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Visa Integrated Circuit Card Application Overview
The Visa Integrated Circuit Card (ICC) Application Overview has been updated. Please see the Chapter 1, Section 1.6, “Impact Summary” for information on what has changed from Visa ICC Specification (VIS) version 1.3.2. This document is the final copy of the Visa ICC Specification version 1.4.0. It reflects changes from the copy published on the Visa website in April 2001. These changes are noted in a separate changes list available on the Visa website. It is important that Visa staff, members, and vendors review the changes list. If you have any comments regarding this manual, please contact your regional representative. Your opinion is important to us.

Effective: 31 October 2001

Visa Integrated Circuit Card

Application Overview Version 1.4.0
Effective: 31 October 2001

 Visa International 1998, 1999, 2001
Visa Public

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patents on public key encryption technology. 2001 Visa International Service Association.
. 1999. trade secrets. and thus any person who implements any part of this Specification should consult an intellectual property attorney before any such implementation. All rights reserved. infringe. trademarks. but not limited to. and (iii) Visa shall have no responsibility or liability whatsoever to any other party arising from the use or publication of the material contained herein.
Printed on recycled paper. (ii) any derivative work must bear a notice that it is not the Visa Integrated Circuit Card Specification published by Visa. copyrights. Permission to copy and implement the
material contained herein is granted subject to the conditions that (i) any copy or re-publication must bear this legend in full. and/or other intellectual property of third parties. Any party seeking to implement this Specification is solely responsible for determining whether their activities require a license to any technology including. 1998. Visa makes no representation or warranty regarding whether any particular physical implementation of any part of this Specification does or does not violate. Visa International Service Association shall not be liable for any party’s infringement of any intellectual property right. or otherwise use the patents. know-how.

It focuses on the functions performed by the chip card and terminal as well as the interaction between the chip card and terminal at the point of transaction. the two specifications should be used together for reference and development purposes. However.About This Specification
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The Visa Integrated Circuit Card Specification (VIS) provides the technical details of chip card and terminal functionality related to Visa Smart Debit and Visa Smart Credit (VSDC) transactions (Visa’s chip-based credit and debit programs).
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. and Visa (EMV) specifications to ease vendor development efforts Aid members and vendors in understanding the changes that chip brings to the credit and debit payment services. The objective of the Visa Integrated Circuit Card Specification is to:
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Communicate the implementation details of Europay. Processing Overview. To facilitate understanding of the differences between these two specifications. VIS builds on the EMV requirements in order to support the Visa payment service rules. please refer to Chapter 2. MasterCard. especially in terms of the processing taking place between the chip card and terminal at the point of transaction Provide Visa’s minimum requirements for chip-based credit and debit programs Identify options that members and vendors can implement to meet market needs Support Visa’s payment service rules and International Operating Regulations for Visa Smart Debit and Visa Smart Credit (VSDC) Define Visa’s implementation of optional EMV features
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Because VIS is based on EMV.

Version 4.
1.0. and corrections and clarifications to VIS 1.2 and the current version. An impact summary highlighting the differences between VIS 1. and readers seeking a technical understanding of the functionality of chip cards and terminals supporting Visa Smart Debit and Visa Smart Credit programs.3. Version 1. is provided later in this chapter.2 VIS Update
This document serves as an update to VIS 1.About This Specification
Visa Integrated Circuit Card Application Overview. vendors.0.1 Audience
This document is intended for members. enhancements to VSDC functionality.4.3.0
1.4. The update includes changes reflecting EMV 2000 Integrated Circuit Card Specification for Payment Systems. VIS 1.2.2.
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.3.

To this end.3 Terminated Transactions
When the term “terminal terminates transaction” is used.3 Terminology
This section provides clarification on several terms used throughout the specification.
1.
1. All other functionality is optional and not required. When it is necessary to distinguish between the chip itself and another card feature such as the magnetic stripe.3.” Markets can customize their programs beyond the minimum requirements through adoption of the optional functions and through proprietary processing.2 Card/Integrated Circuit
In general.
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. however.3. and “shall. Visa’s minimum requirements are designated using the terms “mandatory”. the term “integrated circuit” may be used. the term “card” is used to describe functions performed by the VSDC application on the card. must not interfere with global interoperability. “required”.” Recommended functionality is designated in the document using the term “should.4. it includes the processing to end the transaction and the display of the message to the cardholder and merchant indicating why the transaction cannot be completed. Version 1.” Elective data elements and functions are designated using the terms “optional” or “may.0
1. Proprietary processing.3.Visa Integrated Circuit Card Application Overview. Visa’s minimum requirements reflect the EMV mandatory items in addition to specific requirements outlined in the Visa payment service rules or International Operating Regulations.3 Terminology
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1.1 Mandatory/Required/Recommended/Optional
Visa’s philosophy is to facilitate market requirements while ensuring global interoperability.

4. supported by both the card and terminal.
1.1 Volume Overview
The document is organized into three volumes. Processing Overview—This chapter provides an overview of the each function and highlights whether the function is mandatory or optional.
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Application Volume—This volume provides a technical overview of the processing between the card and terminal. Version 1.2 Chapter Overview
This guide is organized according to the functions that occur during VSDC transaction flow and is divided into the following sections: Chapter 1. This volume may be used as an overview to understand the processing and sequence of events involved in a VSDC transaction flow.4. Chapter 3.
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To provide clarity. It also includes additional Visa specific requirements for card functionality. and an index. Vendors involved in the creation of the VSDC card application should focus on this document for their development efforts. Card Volume—This volume specifies the technical details of EMV related to the data and processing performed by the card.
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. a summary of revisions for this version of the VIS documents.About This Specification
Visa Integrated Circuit Card Application Overview. Application Selection—This function determines which of the applications.4. information is replicated in the three volumes to provide comprehensive information. and concludes with the subheading structure of each chapter. where necessary. Each volume includes a list of acronyms. will be used to conduct the transaction. is followed by an overview of each chapter. a glossary. requirements from EMV may be restated in the various volumes and. About This Specification—This chapter provides an overview of the VIS specification. Chapter 2. Terminal Volume—This volume specifies the technical details of EMV related to the data and processing performed by the terminal. It also includes additional Visa specific requirements for terminal functionality. Vendors involved in the creation of the VSDC terminal application should focus on this document for their development efforts. and a list of reference materials.0
1.4 Document Structure
This section provides an overview of the structure of the Visa Integrated Circuit Card Specification. VIS terminology. It begins with an overview of the three volumes.
1.

Chapter 5. or sent online for an authorization. Initiate Application Processing—During this function. the terminal authenticates data from the card using RSA public key technology. Read Application Data—During this function. Chapter 14. application version checks. Chapter 11.4 Document Structure
Chapter 4. Chapter 12. and other checks are performed by the terminal at the point of transaction. Chapter 6. the terminal determines the cardholder verification method (CVM) to be used and performs the selected CVM. is performed. the terminal applies rules set by the issuer in the card and by the acquirer in the terminal to the results of offline processing. Chapter 13. the terminal ensures that higher-value transactions are sent online and that chip read transactions go online periodically. Offline Data Authentication—During this function. the issuer’s host computer reviews and authorizes or rejects transactions using the issuer’s host-based risk parameters. Terminal Action Analysis—During this function. This risk management check protects against threats that might be undetectable in an offline environment. Terminal Risk Management—During this function. declined offline. Issuer-to-Card Script Processing—During this function. internal to the card. This analysis determines whether the transaction should be approved offline. Chapter 10. velocity checking and other risk management. Online Processing—During this function. Chapter 9.Visa Integrated Circuit Card Application Overview. Completion—During this function. the terminal reads the data records necessary for the transaction from the card. the card and the terminal conclude transaction processing. Processing Restrictions—During this function.4. the card receives any terminal data which was requested by the card during Application Selection. effective and expiration dates checks. Chapter 7. Chapter 8. Cardholder Verification—During this function. the card applies post-issuance changes sent from the issuer. Card Action Analysis—During this function. Version 1.0
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Commands—Provides the requirements for the commands used to support the function.
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1. The impacts of these changes will be communicated in the VIS changes list or in an update to this document. Visa payment service rules.4.
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. Processing—Provides the technical details of the function. NOTE: Flowcharts are representative of processing and may not include all steps that may be performed. Data element tags are listed when multiple tags are associated with a single data element name. If there are several functions within a process. they may be listed separately.
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Prior Related Processing—Outlines prior processing to aid in understanding previous activities related to this function.0
1. the main chapters are structured in the same manner:
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Card Data—Provides the mandatory and optional data elements required on the card to support the function.About This Specification
Visa Integrated Circuit Card Application Overview. Version 1. Subsequent Related Processing—Outlines subsequent processing to aid in understanding future activities related to this function.5 Revisions to This Specification
Revisions to this specification may be required to accommodate future EMV changes. Data element tags are listed when multiple tags are associated with a single data element name. or market needs.4.3 Subheading Overview
For ease of use. Terminal Data—Provides the mandatory and optional data elements needed in the terminal to support the function.

1 Mandatory
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If the Directory method of Application Selection fails. During SDA and DDA. Version 1.4. The EMV Combined DDA/Generate AC option is included as a terminal option. Terminal support for Visa Low-value Payment feature of VSDC. Secure transfer of the PIN from the PIN pad to the card reader is required.4.1. migration requirements. If the SDA Tag List is one of the data elements read from the card.
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. Version 4. the terminal shall switch to the List of AIDs method.1 Terminal
This section includes mandatory and optional changes. The terminal shall not allow Partial Selection during Application Selection if the terminal indicators show it is not supported for the AID. the terminal shall save the Data Authentication Code (if present) and ICC Dynamic Number after recovery.6.
1.1. Refer to the EMVCo website for information on testing schedules.6 Impact Summary
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1. ATMs supporting Offline PIN shall support CVM List processing.Visa Integrated Circuit Card Application Overview.6 Impact Summary
The following is an outline of changes and additional functionality from both a card and terminal perspective for VIS 1. The public key encipherment used in the Offline Enciphered PIN processing may occur either in the PIN pad or in the card reader.0 (April 2001). The testing of terminals to support mandatory changes shall be aligned with the EMV 2000.6.2 Optional
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Visa Operating Regulations may permit the terminal to eliminate certain common applications from consideration during Application Selection.6.0.
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1. the terminal shall validate that the only tag it contains is the tag for the AIP.

0 terminals.6. the tag for the Application Interchange Profile.About This Specification
Visa Integrated Circuit Card Application Overview. To ensure interoperability and backward compatibility cards should begin compliance immediately. Cryptogram Version 14. An SDA tag list that does not comply will result in Offline Data Authentication failure in EMV 4. Cumulative amounts are no longer incremented for offline declines. The ICC Public Key length may equal that of the corresponding Issuer Public Key.6. is referenced as a VIS option.
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. The EMV optional session key generation method is referenced as a VIS option.3.3. Prior to adding this requirement to EMV a survey was conducted to determine if the SDA tag list was being utilized. Support of Cardholder Verification must be indicated in the Application Interchange Profile and a CVM List is required.2 Card
This section includes mandatory and optional changes.1 and 1. An Application Default Action bit has been added to allow issuers to decline the transaction and block the application if the PIN Try Limit was exceeded on a previous transaction.
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1. The results indicated that it was not in use and that the requirement could be added to EMV. The Online Authorization Indicator is no longer reset after offline approval.1 Mandatory
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If a card is personalized with an SDA Tag List.2 will continue to work in the new devices. The EMV Combined DDA/Generate AC option is included as a VSDC card option.2. Changes are backward compatible and cards tested under versions 1. NOTE: Cryptogram Version 14 is not currently supported in VisaNet systems and Issuer’s wishing to implement this option must be aware that they will not be eligible for VisaNet Authentication Services. Version 1.
1.6.4.2 Optional
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The Issuer Public Key length may equal that of the corresponding Visa CA Public Key.0
1. A new cryptogram generation method. Contact the CAA for information on testing schedules.2. the only tag in the list must be “82”.

VSDC Service Activation Guide (SAG)—Describes planning considerations. suggestions. suggestions. and step-by-step activities to assist with implementation for VSDC Acquirers. Version 1. Visa Smart Debit and Visa Smart Credit Member Implementation Guide for Issuers—Describes best practices. Visa Smart Debit/Visa Smart Credit Service Description—A document focusing on the features and benefits of the service.0
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Common Personalization—A guide to a common approach to personalization of all applications. technical aspects and other regional tasks associated with completing a member implementation of VSCD.
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. considerations. NOTE: The Visa Smart Debit and Visa Smart Credit Personalization Templates have been added to this document. considerations.About This Specification
Visa Integrated Circuit Card Application Overview.4. business aspects.
Available on Visa InSite Global Products eLibrary: (http://insite/global/Consumer Platform Search/content) or through a regional representative:
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Certificate Authority User’s Guide—Visa Smart Debit and Visa Smart Credit. and step-by-step activities to assist with implementation for VSDC Acquirers. Visa Smart Debit and Visa Smart Credit Member Implementation Guide for Acquirers—Describes best practices. Visa Smart Debit and Visa Smart Credit Planning Guide—A reference guide and roadmap for Acquirers and Issuers implementing Visa Smart Debit or Visa Smart Credit programs. It describes the components and decisions necessary for program implementation and focuses on what is new and different about implementing a Visa Smart Debit or Visa Smart Credit program. NOTE: This guide is the final authority for non-application specific requirements. Common Personalization for Visa Smart Debit and Credit (VSDC)—A guide to personalization of VSDC Applications using the Common Personalization Approach.
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Visa Smart Debit and Visa Smart Credit Certification Authority Key Revocation Visa Policies and Procedures—The Visa-specific policies and procedures related to key revocation. Visa Cash—Information and procedures related to the Visa Certificate Authority including Visa Certificate Authority Public Keys and Issuer Public Key Certificates.

Available through Visa regional representative:
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Visa Smart Debit/Credit Certificate Authority Internal Procedures—Describes guidelines for enrolling the Visa Certificate Authority and is intended for use by Regional staff supporting VSDC. Member Version—A guide for the VIP System component of the VisaNet Certification Management System. Version 1.7 Reference Materials
Available on Visa InSite or through a Visa regional representative: http://insite/ref/docs
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Card Acceptance Device Reference Guide: Requirements and Best Practices Version 5.0
1. VisaNet Card Technology Standards Manual—The standards applied to PINs. Visa Certification Management Service (VCMS) User’s Manual-BASE II System—A guide for the BASE II System component of the VisaNet Certification Management System.Visa Integrated Circuit Card Application Overview. Visa Certification Management Service (VCMS) Testing and Certification Guide-VIP System.
Available on Visa InSite or through a Visa regional representative: http://insite/dynaweb/opregs
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Visa International Operating Regulations—Specifies standards all Members must meet to operate and participate in Visa Payment Services (Volumes I-IV). Visa Smart Payment Operating Principles Guide—Board-approved payment service principles for Visa Smart Debit and Visa Smart Credit.0—Provides vendors with insight towards designing their card acceptance devices to meet current and future industry and Visa scheme specific requirements and best practices. and the management of cryptographic keys as well as the guidelines for encoding account and cardholder data on Track 1 and Track 2 of the magnetic stripe of a Visa card.
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Available by request to the VSDC Hotline:
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Visa Smart Debit/Visa Smart Credit Early & Full Data Options for Host Systems—Provide Member center managers with an overview of the Early and Full options for their host systems.
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Available on Visa InSite or through a Visa regional representative: http://insite/dept/buspubs1/library/vsmart/techlet.pdf
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Visa Smart Debit and Visa Smart Credit System Technical Manual—A document that describes the changes to VisaNet to support VSDC. PIN-related security.

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the terminal determines which applications are supported by both the card and terminal. or both.1 Functional Overview
The following functions are used in VSDC transaction processing.
2. and the cardholder selects the application to be used for payment. Functions not marked mandatory are optional and are performed based upon parameters in the card or terminal. This is followed by a transaction flow showing the order in which these functions may be performed and the commands sent by the terminal to the card for communications.
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.Processing Overview
2
This chapter provides an overview of a Visa Smart Debit and Visa Smart Credit (VSDC) transaction.
2. though some steps within the mandatory functions may be optional. If these applications cannot be displayed. Regions may have additional restrictions and requirements. Charts at the end of the chapter show functional and command support requirements for cards and terminals.1 Application Selection (mandatory)
When a VSDC card is presented to a terminal. the terminal selects the highest priority application as designated by the issuer during card personalization.1. Functions marked as mandatory are performed for all transactions. The terminal displays all mutually supported applications to the cardholder.

4. DDA has two forms: Standard DDA and Combined DDA/Generate AC.3 Offline Data Authentication
The terminal determines whether it should authenticate the card offline using either offline static or dynamic data authentication based upon the card and terminal support for these methods. which contains a hash of important application data encrypted with the Issuer Private Key. With Standard DDA. Offline Dynamic Data Authentication (DDA).0
2. Offline Static Data Authentication (SDA) validates that important application data has not been fraudulently altered since card personalization.1. validates that the card data has not been fraudulently altered and additionally validates that the card is genuine. the generation of the dynamic signature is combined with the generation of the card’s Application Cryptogram during Card Action Analysis to assure that the Application Cryptogram came from the valid card. With Combined DDA/AC Generation. like SDA. The terminal reads the data indicated by the card and uses the supported function list to determine the processing to perform. Version 1.1. which is stored on the card inside a public key certificate and a digital signature. A match of the recovered data to the original data verifies that the card is not a counterfeit card created with data skimmed (copied) from a legitimate card.2 Initiate Application Processing/Read Application Data (mandatory)
When a VSDC application is selected. A match of the recovered hash with a generated hash of the actual application data proves that the data has not been altered. The card may indicate different data or different support functions based upon characteristics of the transaction such as domestic or international.
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. The terminal decrypts this dynamic signature using the ICC Public Key recovered from card data. the terminal requests that the card indicate the data and functions supported for that application and the functions supported.Processing Overview
Visa Integrated Circuit Card Application Overview.
2. the terminal requests that the card generate a cryptogram using dynamic (transaction unique) data from the card and terminal and an ICC Private Key. The terminal validates static (unchanging) data from the card using the card’s Issuer Public Key.

and whether any Application Usage Control restrictions are in effect. and Visa (EMV) specifications. or cashback. The card data elements used are those defined by Europay. Some transactions are randomly selected for online processing.
2. or the merchant has forced the transaction online.6 Terminal Risk Management (mandatory)
Terminal Risk Management checks whether the transaction is over the merchant floor limit. goods. the account number is on an optional terminal exception file. services.1 Functional Overview
2. If the CVM is offline PIN.4 Processing Restrictions (mandatory)
The terminal performs Processing Restrictions to see whether the transaction should be allowed.5 Cardholder Verification (mandatory)
Cardholder verification is used to ensure that the cardholder is legitimate and the card is not lost or stolen. the limit for consecutive offline transactions has been exceeded. The CVM List establishes a priority of cardholder verification methods. Version 1. cash. MasterCard. which compares it to a Reference PIN stored secretly in the card. Under certain conditions.1. whether the application versions of the card and terminal match.4. Terminal Risk Management also includes optional velocity checking by the terminal using data elements from the card. the card is a new card. The CVM List may also specify other methods of cardholder verification. Visa recommends support for velocity checking by the card and the data elements used card velocity checks are defined by Visa. whether the card has expired. such as online PIN. which consider the capabilities of the terminal and characteristics of the transaction to prompt the cardholder for a specific method of cardholder verification. An issuer may use Application Usage Controls to restrict a card’s use for domestic or international.Visa Integrated Circuit Card Application Overview. the terminal may use a default CVM as defined by Visa International Operating Regulations. Terminal velocity checking results are considered during Terminal Action Analysis. The terminal uses a Card Verification Method (CVM) List from the card to determine the type of verification to be performed.1.0
2. or no cardholder verification required. The terminal checks whether the effective date for the card has been reached.1. the terminal prompts the cardholder for a PIN and transmits the cardholder-entered PIN to the card.
2. Card velocity checking results are considered during Card Action Analysis
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. signature.

This message includes the ARQC cryptogram. the card generates the application cryptogram using application data and a secret DES key stored on the card. The TC may be used as a ‘proof ’ of transaction when a cardholder disputes a transaction and to verify that the transaction data has not been changed by the merchant or acquirer. The card cannot override a terminal decision to decline a transaction.1. The issuer may consider these CAM results and the offline processing results in its authorization decision. and an Application Authentication Cryptogram (AAC) for a decline. and count or amount velocity checking limits having been reached. the data used to generate the ARQC. For offline declined transactions.7 Terminal Action Analysis (mandatory)
Terminal Action Analysis uses the results of Offline Data Authentication.
2. the card performs Card Action Analysis where Card Risk Management checks may be performed to determine whether to change the transaction disposition set by the terminal.0
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. the TC and the data used to generate it are transmitted in the clearing message for future cardholder disputes or chargeback purposes. the issuer validates the ARQC to authenticate the card in a process called Online Card Authentication (CAM). After determining the transaction disposition. and the card may convert an online request to an offline decline.8 Card Action Analysis (mandatory)
Upon receiving the application cryptogram request from the terminal. During online processing. The type of application cryptogram is based upon the transaction disposition with a Transaction Certificate (TC) for an approval. Processing Restrictions.Processing Overview
Visa Integrated Circuit Card Application Overview. or declined offline. These may include checks for prior incomplete online transactions. Terminal Risk Management. the terminal requests an application cryptogram from the card. For offline approved transactions. the terminal transmits an online authorization message to the issuer if the terminal has online capability. and Cardholder Verification and rules set in the card and terminal to determine whether the transaction should be approved offline. failure of Issuer Authentication or offline data authentication failure on a previous transaction.1.
2. or both. sent online for authorization. and indicators showing offline processing results. After completion of the checks. Version 1.1. the cryptogram type is an AAC.9 Online Processing
If the card and terminal determine that the transaction requires an online authorization. The card rules are set in fields called Issuer Action Codes (IACs) sent to the terminal by the card and the terminal rules are set in Terminal Action Codes (TACs). an Authorization Request Cryptogram (ARQC) for an online request. The card may convert a terminal request for an offline approval to an online transaction or an offline decline.4. It returns this cryptogram to the terminal.

1. the terminal passes the script commands to the card. The Issuer has the option to set up the card to decline the transaction if Issuer Authentication fails. and the card’s secret DES key). Successful Issuer Authentication may be required for resetting certain security-related parameters in the card.11 Completion (mandatory)
The card and terminal perform final processing to complete the transaction. The response may also include post-issuance updates to the card called Issuer Scripts.
2. The card uses the transaction disposition.
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. and issuer-encoded rules to determine whether to reset card-based counters and indicators.4. With single message systems or systems involving acquirer host data capture of approved transactions. Version 1.10 Issuer-to-Card Script Processing
If the issuer includes script updates in the authorization response message. subsequent transactions for the card will be sent online for authorization until Issuer Authentication is successful.
2. blocking and unblocking the application. If Issuer Authentication fails. the card performs security checking to assure that the script came from the valid issuer and was not altered in transit. and changing the Offline PIN value. The card generates a TC for approved transactions and an AAC for declined transactions. Issuer Authentication results.0
2. the TC is transmitted in the clearing message. If the terminal transmits a clearing message subsequent to an authorization message.1 Functional Overview
The authorization response message transmitted back to the terminal may include an issuer-generated Authorization Response Cryptogram (ARPC) (generated from the ARQC. blocking the card.Visa Integrated Circuit Card Application Overview. If the authorization response contains an ARPC and the card supports Issuer Authentication.1. This prevents criminals from circumventing the card’s security features by simulating online processing and fraudulently approving a transaction to reset card counters and indicators. the terminal must generate a reversal for issuer-approved transactions which are subsequently declined by the card. Prior to applying the updates. resetting the Offline PIN Try Counter. An issuer-approved transaction may be converted to a decline based upon Issuer Authentication results and issuer-encoded parameters in the card. the card performs Issuer Authentication by validating the ARPC to verify that the response came from the genuine issuer (or its agent). the Authorization Response Code. Supported script commands allow updating offline processing parameters.

4. Since VLP consists of many low-value transactions. The amount of spending power is reset to the spending limit at any online capable VSDC terminal if an online authorization or status check transaction is approved by the issuer and the card.
2.3.0
Table 2–3:
Command Support Requirements (2 of 2)
Command
PUT DATA
Card Support
Optional (VIS)
Terminal Support
Pass through from Issuer mandatory (VIS) Mandatory (EMV) Mandatory (EMV) Pass through from Issuer mandatory (VIS) Conditional—If Offline PIN supported (EMV)
READ RECORD SELECT UPDATE RECORD
Mandatory (EMV) Mandatory (EMV) Optional (VIS)
VERIFY
Conditional—If Offline PIN supported (EMV)
2. standard VSDC velocity checking counters are not incremented by VLP transactions. A reset without a financial transaction can also take place at a dedicated online unattended device. Version 1. VLP supports a cumulative amount limit and a per transaction amount limit.3 Visa Low-Value Payment (VLP) Feature
The Visa Low-value Payment (VLP) feature of VSDC offers an optional source of pre-authorized spending power that is reserved for rapid processing of offline low-value payments.1 Overview
Risk management features may differ from those supported for non-VLP VSDC and are selected by the issuer. adding these transactions to standard VSDC velocity checking counters could cause VSDC transactions to be processed online more frequently than intended by issuers. For details on VLP. refer to Appendix G of the Card Volume and Appendix D of the Terminal Volume of this specification.
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. Therefore.Processing Overview
Visa Integrated Circuit Card Application Overview. which performs an online status check.

1 Card Data 3.
This chapter is organized into the following sections: 3.7 Subsequent Related Processing
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. A single application from this list is identified and selected to process the transaction.4 Building the Candidate List 3.6 Flow 3.3 Commands 3.2 Terminal Data 3. The terminal builds a candidate list of mutually supported applications.5 Identifying and Selecting the Application 3. This process takes place in two steps: 1. 2.Application Selection
3
Application Selection is the process of determining which of the applications that are supported by both the card and terminal will be used to conduct the transaction.

language preferred and the priority of the application relative to other applications on the card. It is obtained from the card by the terminal using the SELECT command. The directory file designating the structure of the files beneath the PSE is known as the Payment Systems Directory. The terminal uses a READ RECORD command to access directory files. A directory file is a file listing files contained within the directory. Card and Issuer Data Elements Table.1 Card Data
The card data elements used in Application Selection are listed and briefly described in Table 3–1. A DDF is a file that designates the structure of files beneath it.DDF01”. The AID identifying the Visa Debit Credit application is “A0000000031010”. The PSE is a DDF named “1PAY.4. The SFI is a pointer to Elementary Files (EF)
Directory Definition File (DDF) Directory File
File Control Information (FCI)
Payment Systems Directory
Payment Systems Environment (PSE)
Processing Options Data Object List (PDOL)
Short File Identifier (SFI)
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. Appendix A. which is the entry point to application elementary files (AEF).SYS. The terminal provides the data requested in the list to the card in the GET PROCESSING OPTIONS command. The ADF contains information about the application such as the name of the application. The FCI is information from the card about the application that is provided in response to the SELECT command issued by the terminal. Version 1. The Payment Systems Directory is a directory file containing entries for applications that conform to Europay. which contain data elements for the application. refer to the Visa Integrated Circuit Card Specification.
Application Elementary Files (AEF) Application Identifier (AID)
The AID is composed of the Registered Application Provider Identifier (RID) and the Proprietary Application Identifier Extension (PIX). For a detailed description of these elements and their usage.0
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Table 3–1: Application Selection—Card Data
Data Element
Application Definition File (ADF)
Description
The ADF is a file. MasterCard.Application Selection
Visa Integrated Circuit Card Application Overview. AEF contains data elements used by the application in processing. and Visa (EMV) specifications. The PDOL is a list of tags and lengths for terminal data needed by the card.

or only up to the length of the AID in the terminal. This information may be issuer preferences as to the priority in which the application is selected. There is only one Application Selection Indicator per AID in the terminal and its format is at the discretion of the terminal vendor. The PDOL is used during Initiate Application Processing. the card provides the requested record to the terminal. and the language in which information is displayed to the cardholder. response codes are used to indicate processing results. The AID identifying the Visa Debit Credit application is “A0000000031010”. The terminal shall maintain a list of application AIDs supported by the terminal. Indicates whether the associated AID in the terminal must exactly match the AID in the card including the length of the AID. The command includes the Short File Identifier (SFI) of the file to be read and the record number of the record within the file.3 Commands
SELECT The terminal sends the SELECT command to the card to obtain information from the card about an application supported by the card. Version 1. READ RECORD The terminal sends the READ RECORD command to the card to read the records in the PSE (if Directory Selection is supported) or other DDFs in the List of AIDs Selection Method. In the card response to the SELECT command.
Application Selection Indicator
List of supported applications
3. For a detailed description of these elements and their usage. if present on the card.0
3.Visa Integrated Circuit Card Application Overview. In response to the READ RECORD command.2 Terminal Data
3. refer to the Visa Integrated Circuit Card Terminal Specification.2 Terminal Data
The terminal data elements used in Application Selection are listed and described in Table 3–2.
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Table 3–2: Application Selection—Terminal Data
Data Element
Application Identifier (AID)
Description
The AID is composed of the Registered Application Provider Identifier (RID) and the Proprietary Application Identifier Extension (PIX).4. The card’s response contains the Processing Options Data Object List (PDOL). Appendix A. the name of the application. Card and Issuer Data Elements Table.

5.5 Identifying and Selecting the Application
If there are no mutually supported applications. This file is a list of the applications supported by the card. List of AIDs Selection Method is mandatory for cards and terminals.
3. If the Directory Selection Method was used to build the list of applications.
q
Directory Selection Method is optional for cards and terminals. If this occurs.
3. In the List of AIDs Selection Method. If the Directory Selection Method is attempted and fails.
q
NOTE: Terminals may eliminate applications from the final candidate list under conditions specified in Visa Operating Principles and Regulations. Version 1. the processing is as described in the following sections.0
3. the terminal uses the List of AIDs Method. In the Directory Selection Method. the card’s response to the SELECT command may indicate that the application is blocked. If the card response indicates that the card also supports the application. the transaction is terminated. and there are more available applications on the list of available applications. the terminal reads a file from the card. If more than one application has the highest priority. the terminal adds the application to the candidate list.4. it is attempted first.Application Selection
Visa Integrated Circuit Card Application Overview. If there is at least one mutually supported application.
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.1 Terminal Makes Application Decision
A terminal that does not support cardholder selection or confirmation shall issue a SELECT command to the highest priority application that does not require confirmation. but if supported by the terminal. the terminal should issue a SELECT command for the application with the next highest priority. the terminal issues a SELECT command for each terminal-supported application in a list contained in the terminal.4 Building the Candidate List
There are two approaches used by the terminal to build a list of mutually supported applications. the terminal may issue a SELECT command for either application. The terminal includes any applications listed on both the card list and the terminal list on the candidate list.

the terminal may display them to the cardholder in the order encountered or decide the priority. If more than one application has the same priority.2 Cardholder Makes Account Decision
3.
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. and there are more available applications on the list. If the cardholder does not select an application.2 Terminal Supports Cardholder Selection
A terminal that supports cardholder selection shall present a list of applications in priority order to the cardholder for selection. the card’s response to the SELECT command may indicate that the application is blocked.2. If the cardholder confirms the choice.5 Identifying and Selecting the Application
3. the terminal should remove the rejected application from the list of available applications and request confirmation of the next available application. the terminal may process in the order encountered or choose one of the applications. the terminal should display “Try Again” and display the list of available applications excluding the rejected applications. the terminal offers the next highest priority application until the cardholder confirms or there are no more available applications. and there are more available applications on the list.4. the card’s response to the SELECT command may indicate that the application is blocked.5. the terminal uses the SELECT command to select the application. If this occurs.
3. If the Directory Selection Method was used to build the list of applications. The cardholder selects the application from the list and the terminal uses the SELECT command to select the application.1 Terminal Supports Cardholder Confirmation
A terminal that does not support cardholder selection from a list of displayed applications. but supports cardholder confirmation of an application shall first request cardholder confirmation for the highest priority application. If the cardholder does not confirm.5. If the Directory Selection Method was used to build the list of applications.2. the terminal terminates the transaction.0
3.5.Visa Integrated Circuit Card Application Overview. Version 1. If more than one application is given the same priority. If this occurs.

the PDOL was included in the SELECT response during Application Selection.0
3. Version 1.4. the terminal terminates the transaction and returns to Application Selection for selection of another application. If geographic restrictions do not permit the selected application to be initiated.Visa Integrated Circuit Card Application Overview.7 Subsequent Related Processing
Initiate Application Processing The GET PROCESSING OPTIONS command sent to the card by the terminal includes any terminal data elements specified in the PDOL. If supported.
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.7 Subsequent Related Processing
3.

.

The card also provides the Application Interchange Profile (AIP). When issuing this command.2 Terminal Data 4.1 Card Data 4. a list of files and records that the terminal needs to read from the card. the terminal supplies the card with any recognized data elements requested by the card in a Processing Options Data Objects List (PDOL).3 GET PROCESSING OPTIONS Command 4. a list of functions to be performed in processing the transaction.9 Subsequent Related Processing
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.4 Terminal Processing 4. the terminal issues the GET PROCESSING OPTIONS command to the card to signal that transaction processing is beginning. The PDOL is a list of tags and lengths of data elements.6 Terminal Processing 4. This chapter is organized into the following sections: 4. The card responds to the GET PROCESSING OPTIONS command with the Application File Locator (AFL).8 Prior Related Processing 4.5 Card Processing 4. optionally provided by the card to the terminal during Application Selection.7 Flow 4.Initiate Application Processing
4
During Initiate Application Processing.

4. Visa proprietary data element indicating whether a card supports domestic transactions. Issuer Authentication.
Table 4–1: Initiate Application Processing—Card Data
Data Element
Application File Locator (AFL)
Description
Indicates the file location and range of records that contain card data to be read by the terminal for use in transaction processing. Visa proprietary data element indicating the issuer’s country code. Appendix A. It is part of the FCI obtained from the card by the terminal using the SELECT command. international transactions or both. Cardholder Verification.1 Card Data
The card data elements used in Initiate Application Processing are listed and described in Table 4–1. A list that indicates the capability of the card to support specific functions in the application (Static Data Authentication (SDA). For a detailed description of these elements and their usage.Initiate Application Processing
Visa Integrated Circuit Card Application Overview. Version 1. and Combined DDA/AC Generation. The FCI is information from the card about the application that is provided in response to the SELECT command issued by the terminal. It may also be used to determine which records from the card should be read by the terminal based on whether a transaction is domestic or international. The PDOL is an optional list of tags and lengths for terminal data requested by the card. Used in the Geographic Restrictions check if this check is supported by the card.0
4. Card and Issuer Data Elements Table. Dynamic Data Authentication (Standard DDA). refer to the Visa Integrated Circuit Card Specification. The terminal provides the data requested in the list to the card in the GET PROCESSING OPTIONS command.
Application Interchange Profile (AIP)
File Control Information (FCI)
Geographic Indicator
Issuer Country Code
Processing Options Data Object List (PDOL)
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The terminal also uses a list (if present). refer to the Visa Integrated Circuit Card Terminal Specification.2 Terminal Data
4. called the Processing Options Data Objects List or PDOL.3 GET PROCESSING OPTIONS Command
The GET PROCESSING OPTIONS command from the terminal signals the card that transaction processing is beginning.Visa Integrated Circuit Card Application Overview. For a detailed description of these data elements and their usage. the terminal: 1.0
4. Any data elements requested in the PDOL and recognized by the terminal are passed to the card in this command.4. Sends the GET PROCESSING OPTIONS command to the card.4 Terminal Processing
To Initiate Application Processing.
4. Appendix A. The terminal includes the data specified in the PDOL in the GET PROCESSING OPTIONS command. Version 1. It is provided to the card in the GET PROCESSING OPTIONS command if requested by the card.
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4.2 Terminal Data
The terminal data elements used in Initiate Application Processing are listed and described in Table 4–2. Card and Issuer Data Elements Table.
Table 4–2: Initiate Application Processing—Terminal Data
Data Element
Terminal Country Code
Description
Terminal data indicating the country of the terminal. which was provided by the card during Application Selection. Extracts the Processing Options Data Objects List (if present) from the File Control Information (FCI) provided by the card in response to the SELECT command.
2.

the card responds to the GET PROCESSING OPTIONS command with an error code “Conditions of use not satisfied”. the terminal: a. to determine if restrictions apply. Receives the card response to the GET PROCESSING OPTIONS command If the card responds with “Conditions of use not satisfied”. If geographic restrictions are not checked.5 Card Processing
Upon receiving the GET PROCESSING OPTIONS command. Returns to Application Selection 3. If Geographic Restrictions are checked and apply.0
4. if supported. Determines the files and records that are to be read (they may differ for domestic/international) and locates or builds the AFL. Performs Geographic Restrictions Check.
4. the terminal: a. or are checked and do not apply. the card increments the Application Transaction Counter (ATC) by 1 and responds to the GET PROCESSING OPTIONS command with the AIP and AFL. If the card responds with the AFL and the AIP.4. Compares Terminal Country Code (if requested in the PDOL and returned by the terminal) to Issuer Country Code to determine if the transaction is domestic or international. Version 1. Proceeds to Read Application Data
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4. 2. The terminal may return a different AIP in the response to GET PROCESSING OPTIONS.
2. the card performs the following actions: 1. Removes the application from the list of available applications b.6 Terminal Processing
The terminal processes the response to the GET PROCESSING OPTIONS command from the card as follows: 1.Initiate Application Processing
Visa Integrated Circuit Card Application Overview.
3.

Online Processing The AIP provided by the card in response to the GET PROCESSING OPTIONS command is used by the terminal to determine if the card supports Issuer Authentication.0
4.Initiate Application Processing
Visa Integrated Circuit Card Application Overview.
4.8 Prior Related Processing
Application Selection The card supplies the PDOL (if present) to the terminal as part of the FCI provided in response to the SELECT command.4. Cardholder Verification The AIP provided by the card in response to the GET PROCESSING OPTIONS command is used by the terminal to determine if the card supports Cardholder Verification.
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. Offline Data Authentication The AIP provided by the card in response to the GET PROCESSING OPTIONS command is used by the terminal to determine if the card supports Offline Data Authentication. Version 1.9 Subsequent Related Processing
Read Application Data The AFL provided by the card in response to the GET PROCESSING OPTIONS command is used by the terminal to determine what application data to read from the card and what data is to be used in Offline Data Authentication.

Read Application Data
Visa Integrated Circuit Card Application Overview. which the terminal obtains from the AFL. Version 1. Appendix A. The READ RECORD command contains a designation of the SFI and record number to be read. The terminal reads these records using the READ RECORD command.4.
Table 5–2: Read Application Data—Card Data
Data Element
Application Elementary Files (AEF)
Description
Card data files containing data used for application processing. Each entry designates the first record and last record numbers to read from the file and which records are to be used for authentication during Offline Data Authentication.1 Card Data
A detailed description of these card data elements and their usage is found in the Visa Integrated Circuit Card Specification.
Table 5–1: Read Application Data—Previously Sent Card Data
Data Element
Application File Locator (AFL)
Description
Indicates the file location and range of records containing card data to be read by the terminal for use in transaction processing. Card and Issuer Data Elements Table.0
5. The SFI is a number used to uniquely identify application data files.
Short File Identifier (SFI)
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. The data element described in Table 5–1 was previously sent from the card to the terminal in the response to GET PROCESSING OPTIONS and is used during Read Application Data. An AEF consists of a sequence of records that are addressed by record number. It is listed in the AFL and used by the terminal to identify the files to be read.
The terminal uses the card data structures described in Table 5–2 during Read Application Data.

The card’s response to the READ RECORD command contains the requested record. the terminal saves the data objects from the record for subsequent processing. Version 1.3 READ RECORD Command
The terminal sends the card a READ RECORD command for each record to be read. When the requested record is received from the card. The terminal continues reading records from the file until it reads the last record designated to be read. For each AFL entry.4.
5.0
5.Visa Integrated Circuit Card Application Overview. the terminal puts the record data into the static data authentication input list. the terminal uses the READ RECORD command to request the first record designated to be read. If the AFL entry has specified that the record is needed in authentication of static data during Offline Data Authentication. The command includes a Short File Identifier (SFI) that identifies the file and a record number to identify the record within the file.4 Processing
The terminal uses the Application File Locator (AFL) from the card to determine which records to read from the card.
5. The terminal processes subsequent AFL entries in the same manner until all AFL entries have been processed.
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. the terminal proceeds to Offline Data Authentication.2 Terminal Data
No terminal data is used in the Read Application Data function. At this point.2 Terminal Data
5.

DDA can be performed using either Standard DDA or Combined DDA/Application Cryptogram (AC) Generation. Offline Data Authentication support is optional for cards.
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. Offline Data Authentication has two forms:
q
Static Data Authentication (SDA) Dynamic Data Authentication (DDA)
q
During SDA processing. SDA ensures that issuer-selected card data elements have not been altered since the card was personalized. DDA ensures that issuer-selected card data elements have not been altered since the card was personalized. DDA also confirms that the card is genuine and has not been created by copying data from a valid card to a counterfeit card (skimming). the terminal authenticates the static card data and also authenticates a signature. Online authorization systems may use the results of Offline Data Authentication in their authorization response decision. Support for SDA is mandatory for all offline capable terminals and support for DDA is recommended for all offline capable terminals. which the card generates using transactionunique data.Offline Data Authentication
6
Offline Data Authentication is the process by which the terminal authenticates data from the card using RSA public key technology. go online for authorization. or decline offline. Offline Data Authentication results are considered in the card and terminal’s decision of whether to approve offline. the terminal authenticates static (unchanging) data from the card. During DDA processing.

6.1 Keys and Certificates
The terminal performs Offline Data Authentication using RSA public key technology to validate digital certificates and signatures from the card. RSA public key technology uses private keys to generate enciphered values (certificates or signatures) of data elements, which are later deciphered (unlocked) for validation and data recovery.

6.1.1 Visa Certificate Authority (CA)
Offline Data Authentication requires a Certificate Authority (CA), which is a highly secure cryptographic facility that signs the issuer’s Public Keys with the Visa CA Private Keys to create an Issuer Public Key (PK) Certificate. Terminals contain the CA’s public keys for every application supported by the terminal. Visa is the CA for Visa Smart Debit and Visa Smart Credit (VSDC) applications.

6.1.2 RSA Key Pairs
6.1.2.1 Visa Public/Private Keys
Visa, as a Certificate Authority (CA), generates up to six RSA public/private key pairs. Visa assigns a unique Public Key Index (PKI) to each key pair. The Visa CA Public Keys and their indexes are loaded into terminals by acquirers. The Visa CA Private Keys are kept secret and used to sign Issuer Public Key Certificates. Terminals supporting SDA, DDA, or Offline Enciphered PIN contain the Visa CA Public Keys with their corresponding Registered Application Identifier (RID) and Certificate Authority Public Key Indexes (PKI) assigned by Visa.

6.1.2.2 Issuer Public/Private Keys
Both SDA and DDA require that the issuer generate an RSA public/private key pair and obtain Issuer Public Key (PK) Certificates from the Visa CA. To do this, the issuer sends its RSA public key to Visa CA, which generates and returns one or more Issuer PK Certificates to the issuer. The Visa CA returns an Issuer PK Certificate for each Visa CA Public Key that is longer than the Issuer Public Key and expires after the expiration date of the Issuer PK Certificate. The Issuer PK Certificate contains the Issuer Public Key enciphered with the Visa Private Key. All cards that support SDA or DDA must contain an Issuer PK Certificate and related data including the index to identify the Visa Public Key the terminal should use to decipher the certificate. The Issuer Private Key is kept in a secure device by the issuer and used to sign cards’ static data (for SDA) and ICC certificates (for DDA) prior to card personalization.

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Offline Data Authentication

Visa Integrated Circuit Card Application Overview, Version 1.4.0

6.1.2.3 ICC Public/Private Keys
DDA requires that the issuer generate a unique public/private key pair for each card. The ICC Private Key is stored in a secure card location. The ICC Public Key is enciphered with the Issuer Private Key to form an ICC Public Key Certificate that is stored on the card. The ICC public/private keys may also be used during Offline Enciphered PIN processing. See Chapter 8, Cardholder Verification, for details.

6.1.3 SDA Key, Certificate, and Signature Relationships
The following SDA key-related data is personalized on the card:
q

Certificate Authority Public Key Index (PKI) is used with the RID portion of the AID to identify the Certification Authority Public Key used for offline data authentication. The Issuer Public Key Certificate containing the Issuer Public Key signed with the Visa CA Private Key The Issuer Public Key Exponent The Issuer Public Key Remainder, if required, contains the portion of the Issuer Public Key which does not fit into the Issuer Public Key Certificate The Signed Static Application Data (SAD) which is a signature enciphered with the Issuer Private Key and which contains a hash of important card data

q

q

q

q

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Visa Integrated Circuit Card Application Overview, Version 1.4.0

6.1 Keys and Certificates

The relationship between keys, certificates, and signatures for SDA is shown in Figure 6–1.
Figure 6–1: SDA Key Relationships

6.1.4 DDA Key, Certificate, and Signature Relationships
The same issuer public/private key pair and Issuer PK Certificate are used for DDA and SDA. For DDA, a unique ICC public/private key pair is required for each card. The ICC Public Key and a hash of static data is signed with the Issuer Private Key to form an ICC Public Key (PK) Certificate, which is personalized on the card. The ICC Private Key is also personalized in a secure card location.

Data Element
Certificate Authority (CA) Public Keys
Certificate Authority (CA) Public Key Index (PKI) Registered Application Identifier (RID) Terminal Verification Results (TVR)
Status of processing functions as seen from the terminal perspective.4.Offline Data Authentication
Visa Integrated Circuit Card Application Overview.3 Static Data Authentication (SDA)
When SDA is performed.
Data Element
Certificate Authority Public Key Index (PKI)
Issuer Public Key Certificate
Issuer Public Key Exponent Issuer Public Key Remainder
SDA Failure Indicator
Signed Static Application Data (SAD)
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. the Issuer Public Key Remainder contains the portion of the Issuer Public Key. If required. with the Certificate Authority Private Key. which contains a hash of important card data. The exponent used in the RSA algorithm to recover the PK Certificate. Version 1. The SAD is a signature enciphered with the Issuer Private Key. the terminal validates important card data described in Table 6–2 and Table 6–3 to assure that this card data has not been altered. Used with the RID to designate which Visa CA Public Key to use for offline data authentication. The Issuer Public Key Certificate contains the Issuer Public Key signed with the Visa CA Private Key. which does not fit into the Issuer Public Key Certificate.
Table 6–2: Terminal Data Used in SDA
Description
The Payment System public keys stored in the terminal and used to recover the Issuer PK Certificate from the card.0
6. A portion of the Application Identifier that identifies the Payment System. which has been signed.
Table 6–3:
Card Data Used in SDA
Description
Each Visa Public Key used for offline data authentication in SDA is identified by the Certificate Authority Public Key Index (PKI) in conjunction with the RID portion of the AID. An internal indicator set and saved by the card if SDA fails and the transaction is declined offline.

Retrieval of the Issuer Public Key The terminal uses the Visa CA Public Key to recover the Issuer Public Key from the Issuer PK Certificate.1 SDA Processing
The card performs no processing during SDA. Retrieval of the Certification Authority Public Key The terminal uses the Certification Authority Public Key Index (PKI) and the RID from the card to retrieve the terminal-stored Visa CA Public Key and related information.0
6.
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.4. The terminal calculates a hash of the actual data elements. SDA passes. the data may have been altered and SDA has failed. SDA Results If all of steps above are executed successfully. The following summarizes the processing by the terminal. 4. Version 1.Visa Integrated Circuit Card Application Overview. This hash is compared to the hash in the recovered data.3 Static Data Authentication (SDA)
6. the terminal sets indicators in the TVR to show SDA results and to use in later processing to determine the disposition of the transaction. If the hashes are not equal.3. The format of the Issuer PK Certificate is validated. If SDA fails. 1. 3. 2. Verification of the Signed Static Application Data The terminal uses the Issuer Public Key to recover the Signed Static Application Data that contains the hash of card data calculated at personalization.

0
Figure 6–3:
Processing Flow for SDA
Card
Response to Read Record contains Visa CA Public Key Index. and SAD
Terminal
READ RECORD response
Retrieve Visa CA Public Key using RID and Public Key Index
Recover Issuer Public Key from Issuer PK Certificate using Visa CA Public Key
Use Issuer Public Key to recover a hash of static application data from the SAD
Calculate hash from Static data used for signing and compare to recovered hash
Set SDA failed in the TVR if any of the above steps are not successful
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.4.Offline Data Authentication
Visa Integrated Circuit Card Application Overview. Issuer Public Key Certificate. Version 1.

Successful DDA means that card data has not been altered and that the card is not counterfeit.0
6.
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.1 Data Elements for DDA Processing
The terminal uses the SDA terminal data and the additional data for DDA described in Table 6–4. After validating the static data. the terminal validates static data from the card using the Issuer’s Public Key and the Visa CA Public Key in a process similar to SDA. With Combined DDA/AC Generation. the signed data includes the Application Cryptogram.4 Dynamic Data Authentication (DDA)
6.
6. transaction-unique number generated by the terminal and sent to the card in the INTERNAL AUTHENTICATE command.Visa Integrated Circuit Card Application Overview. the terminal uses a default DDOL containing the tag for the terminal unpredictable number. The terminal deciphers the signature from the card using the ICC Public Key. The card signs the terminal challenge data and dynamic data from the card with the ICC Private Key to generate a digital signature called the Signed Dynamic Application Data.
Table 6–4: Terminal Data Used in DDA
Data Element
Default Dynamic Data Authentication Data Object List (default DDOL) Unpredictable Number
Description
If the card does not provide a DDOL. Recovered data is compared to actual data to determine whether DDA passes. which has been recovered from the ICC PK Certificate.
An unpredictable.4 Dynamic Data Authentication (DDA)
If offline DDA is to be performed. Version 1. the terminal requests a dynamic signature from the card.4.4. The card sends this dynamic signature to the terminal. This request uses the INTERNAL AUTHENTICATE command for Standard DDA and the first GENERATE AC command for Combined DDA/AC Generation.

the data described in Table 6–5 is used for DDA. With Combined DDA/AC Generation if an ARQC or TC is returned. Information on the type of cryptogram provided by the card and validated by terminal in Combined DDA/AC Generation. List of tags for terminal data objects to be passed to the card in DDA processing.0
All of the SDA data except for the Signed Static Application Data is also used for DDA. it is validated as part of the dynamic signature.
Dynamic Data Authentication Data Object List (DDOL) ICC Dynamic Number
A unique number generated by the card and validated by the terminal as part of the dynamic signature in Combined DDA/AC Generation. In addition. In addition. The ICC Public Key Certificate contains the ICC Public Key signed with the Issuer Private Key.
ICC Private Key ICC Public Key Certificate
ICC Public Key Exponent ICC Public Key Remainder
All of the data elements used in Standard DDA data except for the DDOL are also used for Combined DDA/AC Generation.
Cryptogram Information Data
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Table 6–5: Card Data Used in DDA
Data Element
DDA Failure Indicator
Description
An internal indicator set and saved by the card if Standard DDA fails and the transaction is declined offline. If required.
Table 6–6: Card Data Used in Combined DDA/AC Generation
Data Element
Application Cryptogram
Description
A 3DES cryptogram returned by the card in the GENERATE AC response. The exponent used in the RSA algorithm to recover the ICC PK Certificate.Offline Data Authentication
Visa Integrated Circuit Card Application Overview. the data described in Table 6–6 is used. the ICC Public Key Remainder contains the portion of the ICC Public Key that does not fit into the ICC Public Key Certificate. Used by the card to generate a dynamic signature. Version 1.

which was recovered from the ICC PK Certificate. Retrieval of the Issuer Public Key The terminal uses the Visa CA Public Key to recover the Issuer Public Key from the Issuer PK Certificate. DDA fails. If the hashes are not equal. Retrieval of the Certification Authority Public Key The terminal uses the Certification Authority Public Key Index (PKI) and the RID from the card to retrieve the terminal-stored Visa CA Public Key and related information. 2. 1.
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. 3. MasterCard. The following summarizes this processing.4. DDA fails. 4. Dynamic Signature Generation (Standard DDA only) The terminal passes the card an INTERNAL AUTHENTICATE command that includes dynamic challenge data. the card generates a dynamic signature by encrypting a hash of the terminal and card dynamic data with the ICC Private Key. Version 1. The terminal validates the hash by comparing it to a hash of the actual data.0
6. and Visa (EMV) specifications. which is listed as optional in Europay. If a terminal-generated hash of the actual dynamic data does not match the recovered hash.4 Dynamic Data Authentication (DDA)
6. Validation of the Certificate Serial Number.2 Standard DDA Processing
This processing is performed by the terminal except for the card generation of the dynamic signature.4. Dynamic Signature Verification (Standard DDA only) The terminal decrypts the dynamic signature using the ICC Public Key. Upon receiving the INTERNAL AUTHENTICATE command. The card passes the dynamic signature to the terminal.Visa Integrated Circuit Card Application Overview. The format of the Issuer PK Certificate is validated. Retrieval of the ICC Public Key The terminal uses the Issuer Public Key to decrypt the ICC PK Certificate that contains the ICC Public Key and a hash of static application data. is not supported in this version of the Visa Integrated Circuit Card Specification. 5.

2.4.4. Dynamic Signature Generation (Combined DDA/AC Generation only) If the terminal is requesting an online cryptogram (ARQC) or offline approval cryptogram (TC) during Terminal Action Analysis. If the card decides that the Application Cryptogram is a TC or ARQC. The requesting and validation of this cryptogram involves the following steps: 1. processing continues based upon the type of cryptogram received. the card signs the Application Cryptogram and related data with the ICC Private Key and returns this dynamic signature in the GENERATE AC response. The INTERNAL AUTHENTICATE command is not used. the first GENERATE AC command indicates that Combined DDA/AC Generation is to be performed.0
6.Offline Data Authentication
Visa Integrated Circuit Card Application Overview. the terminal deciphers the dynamic signature using the ICC Public Key recovered in Step 3. the transaction is declined offline. The terminal requests the dynamic cryptogram using the first GENERATE AC command. Version 1.
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. If the signature is successfully recovered.3 Combined DDA/AC Generation Processing
For Combined DDA/AC Generation. If the signature recovery fails. the terminal performs Standard DDA Steps 1 through 3. Dynamic Signature Verification (Combined DDA/AC Generation only) During Card Action Analysis if the first GENERATE AC response contains a TC or ARQC.

4. the transaction is declined offline. the card returns ARQC and TC Application Cryptograms in a dynamic signature signed with the ICC Private Key. the terminal sets the Combined DDA/AC Generation indicator in the GENERATE AC command. the terminal continues processing based upon the Application Cryptogram. Version 1. the terminal deciphers the signature using the ICC Private Key. If SDA or DDA failed and the transaction is to be declined offline.0
6. When Combined DDA/AC Generation is to be performed and the transaction is to be sent online or approved offline. Card Action Analysis SDA and Standard DDA The card sets an indicator in the CVR if SDA failed on a previous transaction and the transaction was declined offline. the SDA Failure Indicator or DDA Failure Indicator is set.
6. Online Processing Combined DDA/AC Generation When the returned Application Cryptogram is in a dynamic signature.Offline Data Authentication
Visa Integrated Circuit Card Application Overview.
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. or approved offline. Combined DDA/AC Generation If the GENERATE AC command received from the terminal indicates that Combined DDA/AC Generation is to be performed. The AFL and the Static Data Authentication Tag List designate the data to be used to validate the static data hash in the Signed Static Application Data during SDA and in the ICC PK Certificate during DDA. sent online for authorization. This data includes the data required for the supported Offline Data Authentication methods. If the decipherment is successful.6 Subsequent Related Processing
Terminal Action Analysis The terminal uses the Offline Data Authentication results and card and terminal parameters to determine whether the transaction should be declined offline. A similar CVR indicator is set if DDA failed on a previous transaction and the transaction was declined offline.5 Prior Related Processing
Read Application Data The terminal reads application data from the card. If the decipherment fails.

If SDA or DDA failed and the transaction is to be declined offline because an online authorization could not be completed.6 Subsequent Related Processing
Completion After an online authorization.Visa Integrated Circuit Card Application Overview.0
6. Combined DDA/AC Generation If Combined DDA/AC Generation failed and the Application Cryptogram returned was an ARQC. a second GENERATE AC command requesting an AAC is sent to the card. the card may reset the SDA Failure Indicator and DDA Failure Indicator based upon Issuer Authentication options and results.
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. If Combined DDA/AC Generation failed and the Application Cryptogram returned was a TC.4. the transaction is declined offline with no second GENERATE AC requested. Version 1. the SDA Failure Indicator or DDA Failure Indicator is set.

.

effective and expiration dates.7 Prior Related Processing 7.8 Subsequent Related Processing
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. and conditions at the point of transaction. This chapter contains the following sections: 7.2 Terminal Data 7. The terminal shall support checks on application versions.3 Application Version Number 7.5 Application Effective Date 7.6 Application Expiration Date 7.Processing Restrictions
7
The Processing Restrictions function is performed by the terminal using data elements from the terminal and the card.4 Application Usage Control 7.1 Card Data 7.

The Issuer Country Code is a Europay.1 Card Data
The card data elements used in Processing Restrictions are listed and described in Table 7–1. Version 1. For a detailed description of these elements and their usage.0
7.4. MasterCard. It is used in application version number checking by the terminal. The Application Expiration Date is the date after which use of the application is no longer permitted. refer to the Visa Integrated Circuit Card Specification. Card and Issuer Data Elements Table. Cards complying with this specification should use the value of 140 AUC is an optional data element. The Application Effective Date is the date when the application becomes activated for use. This data element indicates any restrictions set forth by the issuer on the geographic usage and services permitted for the card application. It is used in Application Usage Control checking by the terminal. and Visa (EMV) specification data element indicating the country of the card issuance. Appendix A.
Table 7–1: Processing Restrictions—Card Data
Data Element
Application Version Number
Description
This data element (tag “9F08”) indicates the version of the application on the card. It is used in Application Usage Control checking by the terminal.Processing Restrictions
Visa Integrated Circuit Card Application Overview.
Application Usage Control (AUC)
Issuer Country Code
Application Effective Date
Application Expiration Date
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This data element indicates the country in which the terminal is located. It is used in application effective and expiration date checks by the terminal. verification of the cardholder. refer to the Visa Integrated Circuit Card Terminal Specification. This data element indicates the type of financial transaction. Indicates the capabilities of the terminal in regard to card data input.2 Terminal Data
7.0
7. and security. It is used in Application Usage Control checking by the terminal.
Table 7–2: Processing Restrictions—Terminal Data
Data Element
Application Version Number
Description
This data element (terminal tag ‘9F09’) indicates the version of the application In the terminal. Card and Issuer Data Elements Table. Terminals complying with this specification should use the value of 140. It is used in Application Usage Control checking by the terminal. Appendix A.4. It is used in Application Usage Control checking by the terminal. For a detailed description of these elements and their usage. Version 1.
Terminal Capabilities
Terminal Country Code
Transaction Date
Transaction Type
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.Visa Integrated Circuit Card Application Overview.2 Terminal Data
The card data elements used in Processing Restrictions are listed and described in Table 7–2. This is the local date (in the terminal) on which the transaction processing is taking place.

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. If the effective date is greater than the Transaction Date. Application Effective Data checking is mandatory for the terminal if the data element is present in the card.
7.5 Application Effective Date
Application Effective Date checking ensures that the application is active by validating that the card’s Application Effective Date if present is less than or equal to the terminal’s local Transaction Date. If they are not the same. These checks are similar to service code checks performed for magnetic stripe transactions and include checks for restrictions on the following transactions:
q
Domestic – – – – Cash Goods Services Cashback
q
International – – – – Cash Goods Services Cashback
q
ATM Other than ATM
q
7. the terminal indicates in the Terminal Verification Results (TVR) that the application versions differ. the terminal indicates in the TVR that the application is not yet effective. Presence of the Application Effective Data is optional for the card. Version 1.Processing Restrictions
Visa Integrated Circuit Card Application Overview.4.0
7.4 Application Usage Control
Application Usage Control checking is a process in which the terminal checks various conditions at the point of transaction to determine if processing should continue.3 Application Version Number
The terminal compares the Application Version Number in the card to the Application Version Number in the terminal to see if they are the same.

Visa Integrated Circuit Card Application Overview.6 Application Expiration Date
Application Expiration Date checking validates that the application has not expired by ensuring that the card’s Application Expiration Date is greater than or equal to the terminal’s local Transaction Date.
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. Version 1.0
7.4. If the Application Expiration Date is less than the Transaction Date.6 Application Expiration Date
7. the terminal indicates in the TVR that the application has expired.

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.7 Prior Related Processing
7.7 Prior Related Processing
Read Application Data The terminal uses the READ RECORD command to obtain the Application Version Number. or the requested service is not allowed for the card product.
7.0
7. Issuer Country Code. and Application Effective Date are also read from the card.Visa Integrated Circuit Card Application Overview.8 Subsequent Related Processing
Terminal Action Analysis During Terminal Action Analysis.4. Version 1. cards are not yet effective or expired. and Application Expiration Date from the card. the terminal checks the Issuer Action Codes and Terminal Action Codes to see what action should be taken if application versions differ. if present. The AUC.

.

The terminal uses rules in the card’s CVM List to select the CVM to be used. In Cardholder Verification. such as biometric methods.Cardholder Verification
8
Cardholder Verification is used to ensure that the cardholder is legitimate and the card is not lost or stolen. CVMs supported are:
q
Offline Plaintext PIN Offline Enciphered PIN Online PIN Signature
q
q
q
Signature may be combined with the Offline PIN validation methods.
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. The results of CVM processing play a role in later processing. the transaction amount. and the capabilities of the terminal. the terminal determines the cardholder verification method (CVM) to be used and performs the selected CVM. CVM processing is designed to support additional CVMs. the validation of the PIN is done within the card. Offline PIN results are included in the online authorization message and should be considered in the issuer’s authorization decision. With the Offline PIN methods. The selection criteria in the CVM List may include the type of transaction (cash or purchase). as they are adopted. The CVM List also specifies the terminal action if the CVM fails.

A prioritized list of methods of cardholder verification for the card application.Visa Integrated Circuit Card Application Overview. Conditions when this CVM entry should be used.0
8.
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. with each entry containing the following subfields: Description Designates the action to take if the CVM fails. for example. The type of CVM to perform. offline PIN.
Table 8–1: CVM List Processing—Card Data
Data Element
Application Interchange Profile (AIP) Cardholder Verification Method (CVM) List
Description
Contains an indicator showing whether the card supports cardholder verification. for an example showing how issuers might define a CVM List. Cardholder Verification. Chapter 8. This indicator must be set to “1”. A CVM List contains the following:
q
Amount X—An amount that may be used in CVM usage conditions Amount Y—A second amount that may be used in CVM usage conditions CVM entries—The CVM List may contain more than one entry. for example. Version 1.
q
q
Subfield CVM Code CVM Type CVM Conditions
Refer to the Visa Integrated Circuit Card Specification.1 Card Data
8. Card and Issuer Data Elements Table.4.1 Card Data
The terminal uses the card data described in Table 8–1 and Table 8–2 for CVM List processing. A detailed description of these card data elements and their usage is in the Visa Integrated Circuit Card Specification. Appendix A. Choices are to process the next CVM entry or to fail CVM processing. if the terminal supports the CVM Type (offline PIN). A card may contain multiple CVM Lists for use in different circumstances such as international and domestic transactions.

The cardholder PIN. if any. which the card sets for the following conditions:
q
Offline PIN verification performed Offline PIN verification failed PIN Try Limit exceeded Application blocked because PIN Try Limit exceeded
q
q
q
PIN Try Counter
Number of offline PIN tries remaining. Version 1. The card resets the PIN Try Counter to the PIN Try Limit when the cardholder-entered PIN matches the Reference PIN stored in the card or when a script command to reset the counter is successfully processed. Contains indicators.
PIN Try Limit
Reference PIN
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.4.Cardholder Verification
Visa Integrated Circuit Card Application Overview. The card decrements the PIN Try Counter each time a cardholder-entered offline PIN fails verification. which is stored in a secure location on the card. Issuer-specified maximum number of consecutive incorrect PIN tries allowed for a single application. to take if offline PIN tries are exceeded. The terminal may request the PIN Try Counter from the card prior to PIN entry so the terminal may determine whether the PIN tries have already been exceeded and notify the cardholder if only one PIN try remains.0
Table 8–2:
Offline PIN Processing—Card Data
Data Element
Application Default Action (ADA) Card Verification Results (CVR)
Description
A data element used by the card to determine what action.

Used to decipher the ICC PIN Encipherment or ICC PK Certificate. of the public key that does not fit into the public key certificate. if the card supports DDA. Used to decipher the enciphered PIN after it is received at the card.4.
Contains the portion. This is the same certificate and other Issuer Public Key data used for DDA and SDA (see Chapter 6. Used in the algorithm that deciphers the enciphered PIN.
Table 8–3: Offline Enciphered PIN—Card Data
Data Element
Certificate Authority Public Key Index (PKI) ICC PIN Encipherment or ICC Private Key ICC PIN Encipherment or ICC Public Key (PK) Certificate ICC PIN Encipherment or ICC Public Key Exponent ICC PIN Encipherment or ICC Public Key Remainder Issuer Public Key Data
Description
With the RID.1 Card Data
Support for Offline Enciphered PIN requires card-level RSA public/private key data. The issuer may either generate an ICC PIN Encipherment public/private key pair to use solely for PIN encipherment or. use the same ICC public/private key pair used for DDA.
Registered Application Provider Identifier (RID)
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. if necessary. Offline Data Authentication). Encrypted with the Issuer Private Key. Version 1.Visa Integrated Circuit Card Application Overview. designates the Visa CA Public Key to use to recover the Issuer PK Certificate. Contains the card’s public key to be used in PIN encipherment.0
8. Stored in a secret location on the card. The card shall contain the data elements described in Table 8–3 for whichever key pair is used. Used by the terminal with the Certificate Authority Public Key Index to identify the Visa CA Public Key to be used to recover the Issuer PK Certificate.

Must be present if the terminal supports Offline Enciphered PIN. Indicators are set in the TVR for the following conditions:
q
Terminal Capabilities Terminal Verification Results (TVR)
Cardholder verification was not successful Unrecognized CVM PIN Try Limit exceeded PIN entry required and PIN pad not present or not working PIN entry required. Version 1.2 Terminal Data
The terminal data described in Table 8–4 is used during CVM processing.
Table 8–4: CVM Processing—Terminal Data
Data Element
Enciphered Personal Identification Number (PIN) Data Personal Identification Number (PIN) Pad Secret Key
Description
Transaction PIN enciphered at the PIN pad for online verification or for offline verification. Indicates the CVMs supported by the terminal. but PIN was not entered Online PIN entered
q
q
q
q
q
Transaction Personal Identification Number (PIN) Visa CA Public Keys
Contains data entered by the cardholder for PIN verification. This key is required when the PIN pad and card reader are not integrated into a single tamper-evident device.Cardholder Verification
Visa Integrated Circuit Card Application Overview.
Secret key used by the PIN pad to encipher the entered offline PIN and by the card reader to decipher the enciphered PIN. This key is different from the key used for Offline Enciphered PIN.
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. Appendix A. PIN pad present.0
8. Card and Issuer Data Elements Table.4. A detailed description of these data elements and their usage is in the Visa Integrated Circuit Card Terminal Specification.

If “n” is equal to “0”. The card response indicates one of the following conditions:
q
The PINs match The PINs do not match and the number of PIN tries remaining is “n”.
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.4. the card returns an error response to GET DATA and the terminal bypasses the checking of the PIN Try Counter and continues with Offline PIN processing.0
8. If the PIN Try Counter is in a proprietary data file. GET CHALLENGE Used by the terminal to obtain an unpredictable number from the card for use in Offline Enciphered PIN. The GET CHALLENGE response contains a card-generated unpredictable number. The GET DATA response contains the PIN Try Counter. The card and terminal support the GET CHALLENGE command if they support Offline Enciphered PIN.Visa Integrated Circuit Card Application Overview. VERIFY Used for Offline Enciphered PIN and Offline Plaintext PIN. The GET DATA command contains the tag of the PIN Try Counter.3 Commands
8. PIN tries have been exceeded on the current transaction The PIN tries were exceeded on a previous transaction
q
q
The card and terminal support the VERIFY command if they support Offline PIN processing.3 Commands
The following commands are used for offline PIN processing: GET DATA Used by the terminal to obtain the PIN Try Counter from the card in order to determine whether the PIN Try Limit was exceeded on a previous transaction or is close to being exceeded. Version 1. The VERIFY command contains the cardholder-entered PIN and initiates the card comparison of this PIN with the Reference PIN stored on the card.

The terminal performs the following steps: 1. CVM processing fails—The terminal sets the Cardholder Verification Not Successful flag in the TVR to “1” and proceeds to Terminal Risk Management.0
8. If the terminal reaches the end of the CVM List without a successful CVM. the terminal continues with Cardholder Verification. the terminal sets Unrecognized CVM to “1” in the TVR. d. the terminal proceeds to Terminal Risk Management. If the CVM is successful.4 Processing
Cardholder Verification processing is divided into two parts: the processing of the card’s CVM List and the execution of the CVMs specified in the CVM List. If the CVM is not recognized or is not supported. If the CVM is not successful (for example. the terminal performs the following actions: a. If not.4.Cardholder Verification
Visa Integrated Circuit Card Application Overview. If CVM Code is “proceed to next CVM. 3. If the condition is not satisfied. b. Offline PIN verification failure).4.1 CVM List Processing
The card has no role in CVM List processing beyond providing the CVM List and other required data to the terminal. the terminal proceeds to Terminal Risk Management. Version 1.
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. Checks whether the CVM Condition is satisfied. e. the terminal proceeds to the next CVM List entry. The CVM is considered not successful. If none is specified. If it is “fail CVM.” the terminal sets the Cardholder Verification Not Successful flag to “1” in the TVR and proceeds to Terminal Risk Management. Determines whether to perform Cardholder Verification—If the card supports Cardholder Verification (as indicated in the AIP and if the card provided a CVM List during Read Application Data. Performs the CVM specified.
2.
8. Processes the CVM List entries—Starting with the first entry in the CVM List.” the terminal processes the next CVM List entry. the terminal shall perform the Visa-specified method of cardholder verification for the terminal. c. the terminal proceeds with the action specified in the CVM Code in the CVM entry.

2 Offline Enciphered PIN
Offline Enciphered PIN processing works the same as Offline Plaintext PIN processing except that the cardholder-entered Transaction PIN is enciphered at the PIN pad or terminal and remains enciphered until the card receives it. the terminal issues a GET CHALLENGE command to the card. the terminal requests that the cardholder enter the PIN again and repeats the verification process. If there are PIN tries remaining.0
8. the card returns an indicator that the Offline PIN has been verified. the card decrements the PIN Try Counter and returns an indicator of the number of PIN tries remaining.1 Offline Plaintext PIN
In Offline PIN processing.2.4. the terminal may issue a GET DATA command to the card requesting the PIN Try Counter. Unlike Online PIN. If the PIN Try Counter returned is one.4.
q
If they match.4. The enciphered PIN is included in the VERIFY command to the card. which the terminal uses in an RSA algorithm to encipher the PIN. the card checks a Transaction PIN entered by the cardholder against a Reference PIN stored in the card.
q
8.Cardholder Verification
Visa Integrated Circuit Card Application Overview. the terminal requests the cardholder to enter a PIN at the PIN pad. Offline PIN processing fails. If the card does not support transmitting the PIN Try Counter.4. The Offline PIN results are included in the online authorization message. – – If no PIN tries remain. The card compares the Transaction PIN to the Reference PIN stored on the card. The card returns an unpredictable number. With Offline Plaintext PIN.
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. The card recovers the plaintext PIN from the enciphered PIN using a secret RSA key stored on the card. Offline PIN fails. If the PIN Try Counter returned is zero (no more PIN tries left). If the PIN pad and card reader are not integrated into a single tamper-evident device. If PIN tries remain. To encipher the PIN. and cardholder verification is complete. the terminal proceeds to PIN entry. the terminal displays “Last PIN Try”. The cardholder-entered Transaction PIN is passed in the clear from the card reader to the card using the VERIFY command.2. Version 1. if the transaction is processed online. Verification of the deciphered PIN is the same as with Offline Plaintext PIN processing. the PIN is enciphered with the PIN Pad Secret Key and deciphered by the card reader. If they do not match.2 CVM Processing
8. the Offline PIN is not included in the online authorization message.

8.0
8. the terminal prints a receipt with a line for the cardholder to sign.4 Signature
When signature is the CVM.
8.
8.2.4.2. the issuer may either generate a card-unique ICC PIN Encipherment key pair or may use the same ICC key pair used for DDA. Online PIN processing follows current procedures.4.4. Version 1.6 Fail CVM
When the CVM is “Fail CVM”.Visa Integrated Circuit Card Application Overview.5 No CVM Required
When the CVM is “No CVM Required”.
8.4.4 Processing
In support of this process.4.
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.3 Online PIN
With Online PIN processing. CVM processing is considered to have failed.2. which are outside the scope of this document. the PIN is enciphered after entry and is included in the online authorization message for verification by the issuer’s online system. CVM processing is considered to be successful.2.

Completion After a failed attempt to go online for an authorization.
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. or approved offline. the card uses cardholder verification results and parameters in Application Default Action to determine whether to decline the transaction. which indicates whether the card supports cardholder verification.Cardholder Verification
Visa Integrated Circuit Card Application Overview. The APPLICATION UNBLOCK command can be used to unblock an application that was blocked during CVM processing.6 Subsequent Related Processing
Terminal Action Analysis The terminal uses cardholder verification results and card and terminal parameters called IACs and TACs to determine whether the transaction should be declined offline.
8.4. is retrieved from the card.0
8. Read Application Data The terminal reads the CVM List and other data used in CVM processing from the card. Issuer-to-Card Script Processing The PIN CHANGE/UNBLOCK command can be used to reset the PIN Try Counter to equal the PIN Try Limit and to change the Reference PIN.5 Prior Related Processing
Initiate Application Processing The Application Interchange Profile (AIP). The Offline PIN is not included in the online authorization message. Online Processing CVM results including Offline PIN verification results are included in the authorization request and should be considered in the Issuer’s authorization decision. sent online. Card Action Analysis The card uses cardholder verification results and parameters in Application Default Action to determine whether to decline the transaction or go online for authorization when the PIN Try Limit is exceeded. Version 1.

The ATC value of the last transaction that went online. This data element (tag “9F14”) is the Issuer-specified preference for the maximum number of consecutive offline transactions allowed before a transaction must be sent online if the terminal is online capable. It is used in terminal velocity checking.
Lower Consecutive Offline Limit
Upper Consecutive Offline Limit
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. Appendix A. Card and Issuer Data Elements Table. This data element (tag “9F23”) is the Issuer-specified preference for the maximum number of consecutive offline transactions allowed before transactions must be declined offline. It is used in terminal velocity checking.1 Card Data
The card data elements used in Terminal Risk Management are listed and described in Table 9–1.4.0
9.
A count of the number of transactions processed by the card since personalization. refer to the Visa Integrated Circuit Card Specification. It is used in terminal velocity checking.Terminal Risk Management
Visa Integrated Circuit Card Application Overview. If terminal velocity checking or new card checking by the terminal is required by the card. Version 1. this data element and both of the data elements listed below must be present.
Table 9–1: Terminal Risk Management—Card Data
Data Element
Application Primary Account Number (PAN) Application Transaction Counter (ATC) Last Online ATC Register
Description
Valid cardholder account number used in terminal exception file checking. For a detailed description of these elements and their usage.

Version 1. It is used to record the results of all terminal risk management checks.
Terminal Verification Results (TVR)
Threshold Value for Biased Random selection Transaction Log
To prevent split sales. It is used in floor limit checking. Appendix A.4.Visa Integrated Circuit Card Application Overview. the terminal may have a transaction log of approved transactions.2 Terminal Data
The terminal data elements used in Terminal Risk Management are listed and described in Table 9–2.
Maximum Target Percentage to be used for Biased Random Selection Target Percentage to be used for Random Selection Terminal Floor Limit
Value used for random selection of transactions for online processing. Card and Issuer Data Elements Table. Authorized
Description
This numeric data element stores the amount (excluding adjustments) for the current transaction. Indicates the functions performed by the terminal. Value used for random selection of transactions for online processing. if present. It is used in floor limit checking and random selection of transactions for online processing. This log minimally contains the Application PAN and transaction amount and optionally contains the Application PAN Sequence Number and Transaction Date. This data element is not provided in the online authorization and clearing messages but is used by the terminal to indicate that terminal risk management was performed. A series of indicators in which the results of offline processing from a terminal perspective are recorded. refer to the Visa Integrated Circuit Card Terminal Specification. Value used for random selection of transactions for online processing. may be used in terminal floor limit checking.
Table 9–2: Terminal Risk Management—Terminal Data
Data Element
Amount.
This data element (tag ‘9F1B’) indicates the floor limit in the terminal associated with the Application Identifier for the application. The number of transactions to be stored and maintenance of the log is outside the scope of this specification.0
9. This log.
Transaction Status Information (TSI)
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. For a detailed description of these elements and their usage.2 Terminal Data
9.

Even when the floor limit is zero. if not previously read by the terminal. the terminal checks whether the Primary Account Number (PAN) on the card is listed on the exception file. the terminal sets the Merchant Forced Transaction Online bit to “1” in the TVR. If the terminal contains a transaction log. the terminal performs this check and sets the Transaction Exceeds Floor Limit bit to “1” in the TVR. from the card. Version 1. The terminal indicates in the TVR if a transaction is randomly selected. the merchant may indicate to the terminal that the transaction should be processed online. the terminal sets the Transaction Exceeds Floor Limit bit to “1” in the TVR.0
9.7 Random Transaction Selection
Terminals capable of supporting both offline and online transactions shall randomly select transactions for online processing. If the merchant forces the transaction online. the terminal sets the Card Appears on Terminal Exception File bit to “1” in the Terminal Verification Results (TVR).
9.Terminal Risk Management
Visa Integrated Circuit Card Application Overview.3 GET DATA Command
The GET DATA command is used by the terminal to read the Last Online ATC Register and the Application Transaction Counter (ATC).
9. If the transaction amount is greater than or equal to the floor limit.
9. If the card is listed on the exception file. Examples of this processing are provided in the Visa Integrated Circuit Card Terminal Specification.5 Merchant Forced Transaction Online
At online-capable terminals. Terminal Risk Management. the terminal checks whether the amounts from a previous transaction from the same card combined with the current amount put the transaction over the floor limit.6 Floor Limit Checking
Floor limit checking is performed so that transactions of amounts above the terminal floor limit are sent online for authorization. Chapter 9. Authorized to the Terminal Floor Limit. The terminal compares the Amount.4 Terminal Exception File
If a terminal exception file is present.
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9.4.

If the register is zero. if the Upper and Lower Consecutive Offline Limits are present. The card returns these data elements in the command response. If either of these data objects is not present in the card. the terminal shall bypass this processing. The terminal sends a GET DATA command to the card requesting the Last Online ATC Register and the ATC. the terminal sets the New Card bit to “1” in the TVR.Visa Integrated Circuit Card Application Overview. The terminal sends the GET DATA command to the card requesting the Last Online ATC Register (if this data element is not already present in the terminal). Issuers may elect not to support velocity checking by the terminal. The card responds to the GET DATA command with the Last Online ATC Register.4. The terminal shall perform Terminal Velocity Checking if both the Lower Consecutive Offline Limit (tag “9F14”) and Upper Consecutive Offline Limit (tag “9F23”) are provided by the card in Read Application Data processing.0
9. Version 1. This register is reset during Completion after an online approval based on Issuer Authentication results and card parameters. The terminal compares the ATC and the Last Online ATC Register:
q
If the ATC minus the Last Online ATC Register is greater than the Lower Consecutive Offline Limit.
9. the terminal sets the Lower Consecutive Offline Limit Exceeded bit to “1” in the TVR. If the ATC minus the Last Online ATC Register is greater than the Upper Consecutive Offline Limit.9 New Card Checking
In new card checking by the terminal.8 Terminal Velocity Checking
9. Offline-capable terminals shall support Terminal Velocity Checking. The terminal checks the Last Online ATC Register. the terminal sets the Upper Consecutive Offline Limit Exceeded bit to “1” in the TVR. Velocity checking by the card does not result in the setting of the TVR bits.
q
NOTE: The card may also perform similar velocity checks during Card Action Analysis. the terminal checks the Last Online ATC Register if provided by the card.8 Terminal Velocity Checking
Velocity checking permits issuers to request online processing after a prespecified number of consecutive offline transactions. NOTE: The card may also perform a similar new card check during Card Action Analysis
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.

Terminal Risk Management
Visa Integrated Circuit Card Application Overview.
q
9. if present on the card.4.0
9.11 Subsequent Related Processing
Terminal Action Analysis Based on card and terminal settings.10 Prior Related Processing
Read Application Data The following data is read from the card:
q
Primary Account Number is used in checking the terminal exception file. are used in Terminal Velocity Checking. Version 1. Upper and Lower Consecutive Limits. the terminal determines what action to take if:
q
The card was on terminal exception file The merchant forced the transaction online The floor limit is exceeded The transaction is randomly selected for online processing Velocity checking amounts or counters are exceeded New card
q
q
q
q
q
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.

2 Terminal Data 10.
2.6 Subsequent Related Processing
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. Card Action Analysis).3 GENERATE APPLICATION CRYPTOGRAM (AC) Command 10. Request Cryptogram Processing—The terminal requests a cryptogram from the card. the terminal applies rules set by the issuer in the card and by the acquirer in the terminal to the results of offline processing to determine whether the transaction should be approved offline. Terminal Action Analysis involves two steps: 1. or sent online for an authorization. As a result of Card Action Analysis (see Chapter 11. This process considers issuer-defined criteria from the card called Issuer Action Codes (IACs) and Visa-defined criteria in the terminal called Terminal Action Codes (TACs). recorded by the terminal in the Terminal Verification Results. the card may override the terminal’s decision. Review Offline Processing Results—The terminal reviews the results of offline processing. This chapter is organized into the following sections: 10.1 Card Data 10. or be declined offline.5 Prior Related Processing 10. declined offline.4 Processing 10.Terminal Action Analysis
10
In Terminal Action Analysis.
A decision for an offline approval or request for online processing made during Terminal Action Analysis is not final. be approved offline. to determine whether the transaction should go online. Decisions to decline offline may not be overridden.

1 Card Data
The card data elements described in Table 10–1 were previously received from the card and are used during Terminal Action Analysis. contains detailed descriptions of these elements and their usage.Terminal Action Analysis
Visa Integrated Circuit Card Application Overview.0
10.
q
IAC Denial bits set to “1” reflect the TVR conditions for which the transaction is to be declined offline IAC Online bits set to “1” represent online authorization conditions IAC Default bits set to “1” are the conditions for an offline decline if online processing is not available
q
q
Similar codes called Terminal Action Codes (TACs) are defined in the terminal.
Table 10–2: Request Cryptogram Processing—Card Data
Data Element
Card Risk Management Data Object List 1 (CDOL1)
Description
The CDOL1 contains the tags and lengths of the terminal data objects that are needed by the card to generate the first application cryptogram and for other processing. Appendix A. Card and Issuer Data Elements Table. which correspond to the bits in the Terminal Verification Results (TVR). and IAC Default. Version 1.
The card data element shown in Table 10–2 is used in cryptogram processing.4. The Visa Integrated Circuit Card Specification.
Table 10–1: Review Offline Processing Results—Card Data
Data Element
Issuer Action Codes (IACs)
Description
The IACs are three data elements called IAC Denial. Each IAC consists of a series of bits.
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. IAC Online.

0. which are set during transaction processing to represent offline processing results. Version 1.4. Like the IACs. TAC Online.
Table 10–3: Review Offline Processing Results—Terminal Data
Data Element
Terminal Action Codes (TACs)
Description
The TACs are three data elements called TAC Denial. Version 1.
q
TAC Denial bits set to “1” reflect the TVR conditions for which the transaction is to be declined offline TAC Online “1”bits represent online authorization conditions TAC Default “1” bits are the conditions for an offline decline if online processing is not available
q
q
The required TAC settings are defined by Visa in the Visa Integrated Circuit Card Terminal Specification.
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. Card and Issuer Data Elements Table. Chapter 10. which correspond to the bits in the Terminal Verification Results (TVR). and TAC Default. Appendix A.0
10. contains detailed descriptions of these elements and their usage.2 Terminal Data
The Visa Integrated Circuit Card Terminal Specification. The terminal data elements described in Table 10–3 are used to review offline processing results.2 Terminal Data
10.Visa Integrated Circuit Card Application Overview.
The terminal data elements described in Table 10–4 are used in cryptogram processing.
Table 10–4: Request Cryptogram Processing—Terminal Data
Data Element
Terminal Data Elements
Description
The terminal data elements specified in the CDOL1 from the card are included in the GENERATE APPLICATION CRYPTOGRAM (AC) command.4. each TAC consists of a series of bits. Terminal Verification Results (TVR) The TVR is a series of bits.

This process uses issuer-defined criteria from the card called IACs and Visa-defined criteria in the terminal called TACs. Version 1.1 Review Offline Processing Results
The terminal reviews the results of offline processing to determine whether the transaction should go online. The Visa Integrated Circuit Card Terminal Specification.Terminal Action Analysis
Visa Integrated Circuit Card Application Overview.4.4 Processing
Terminal Action Analysis processing has two steps:
q
The review of offline processing results The request for an Application Cryptogram
q
10. The terminal also indicates in this command if Combined DDA/AC Generation is to be performed.0
10. or be declined offline. contains an example of how IACs and TACs are used with the Terminal Verification Results (TVR) to determine transaction disposition.3 GENERATE APPLICATION CRYPTOGRAM (AC) Command
The terminal sends a GENERATE AC command to the card to request an application cryptogram.
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.4. The command designates one of the following types of application cryptograms:
q
Transaction Certificate (TC)—For an approval Application Authentication Cryptogram (AAC)—For a decline Authorization Request Cryptogram (ARQC)—To go online
q
q
The command also includes the terminal data objects requested by the card in the CDOL1. Terminal Action Analysis. The command response is not returned during Terminal Action Analysis. be approved offline. When the card receives the GENERATE AC command.
10. it proceeds to Card Action Analysis. Chapter 10.

4. Appendix E.
Table 11–1: Card Action Analysis—Card Data
Data Element
Application Cryptogram
Description
A cryptogram returned by the card in the response to the GENERATE APPLICATION CRYPTOGRAM (AC) command. The terminal also indicates in this command whether Combined DDA/AC Generation is to be performed. refer to the Visa Integrated Circuit Card Specification. for a list of data required. Appendix A.
11.
11.
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11.Card Action Analysis
Visa Integrated Circuit Card Application Overview.2 Terminal Data
No terminal data is used during Card Action Analysis.3 GENERATE APPLICATION CRYPTOGRAM (AC) Command
The GENERATE APPLICATION CRYPTOGRAM (AC) command is used by the terminal to request that the card provide a cryptogram indicating the card’s authorization response. For a detailed description of these elements and their usage.
q
An Application Authentication Cryptogram returned for declines is known as an AAC A Transaction Certificate returned for approvals is known as a TC An Authorization Request Cryptogram returned when online processing is requested is known as an ARQC
q
q
Data Requested in Card Risk Management Data Object List (CDOL1)
The terminal provides the data requested by the card in the CDOL1.1 Card Data
The card data elements used in Card Action Analysis are listed and described in Table 11–1. Refer to the Visa Integrated Circuit Card Specification. Cryptogram Versions Supported. Card and Issuer Data Elements Table.

4 Processing
At the end of Terminal Action Analysis. The GENERATE AC command.Visa Integrated Circuit Card Application Overview. the terminal issues the GENERATE AC command to the card to request an application cryptogram and to provide data requested by the card in the CDOL1. The GENERATE AC command received from the terminal also indicates if Combined DDA/AC Generation is to be performed. send online). decline offline.4. This Cryptogram Type indicates the terminal’s transaction decision (approve offline.0
11. This processing is described in Chapter 10. Version 1.4 Processing
11. Terminal Action Analysis. which the terminal is requesting.1 Card Risk Management
The card performs the following Card Risk Management checks if supported by the card and the required data is available:
q
Activity on previous transactions: – – – – – – Online authorization not completed Issuer Authentication failure on last online transaction SDA failure on last transaction DDA failure on last transaction Issuer script processed on last transaction PIN Try Limit exceeded on previous transaction
q
New card check Velocity checks to see whether offline processing limits have been exceeded for: – – – – – Total consecutive offline transactions Total consecutive offline international transactions based on currency Total consecutive offline international transactions based on country Total cumulative offline transaction amount in designated currency Total offline transaction amount in the designated currency and a designated secondary currency
q
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. which the card receives from the terminal. contains the Cryptogram Type.
11.4.

the card encrypts the Application Cryptogram.2 Response to GENERATE AC for Combined DDA/AC Generation
If the terminal has indicated in the GENERATE AC command that Combined DDA/AC Generation is to be performed and the card is returning a TC or an ARQC in the response to GENERATE AC.0
11.4.4 Processing
11.4.
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. Version 1.2. The card returns the signed data to the terminal in the response to GENERATE AC.Visa Integrated Circuit Card Application Overview. Cryptogram Information Data and other data with the ICC Private Key.

Online Processing allows the issuer’s host computer to review and authorize or decline transactions using the issuer’s host-based risk management parameters. In addition to performing traditional online fraud and credit checks, host authorization systems may perform Online Card Authentication using a card-generated dynamic cryptogram and should consider offline processing results in the authorization decision. The response from the issuer may include post-issuance updates to the card and an issuer-generated cryptogram, which the card can validate to assure that the response came from the valid issuer. This validation is called Issuer Authentication. This chapter describes the card and terminal online processing functions, which are new with Visa Smart Debit and Visa Smart Credit (VSDC). Online processing functions, which are also performed with magnetic stripe-read and key-entered transactions, are outside the scope of this document and not described. This chapter is organized in the following manner: 12.1 Card Data 12.2 Terminal Data 12.3 Online Request and Response Data 12.4 Commands 12.5 Processing 12.6 Prior Related Processing 12.7 Subsequent Related Processing

Description
The cryptogram generated by the card earlier in the transaction. The ARQC and the Authorization Response Code are the input to the Authorization Response Cryptogram (ARPC) validation process. The DES keys used for ARPC validation. These are the same keys used to generate the ARQC. Contains a bit that is set if Issuer Authentication fails. A bit that is set if Issuer Authentication fails.

Visa Integrated Circuit Card Application Overview.
Table 12–3: Online Processing—Terminal Data
Data Element
Terminal Verification Results (TVR) Transaction Status Information (TSI)
Description
Contains a bit that is set when Issuer Authentication is unsuccessful. Appendix A.0
12. Chapter 12.2 Terminal Data
12.
Table 12–4: Online Processing—Online Response Data
Data Element
Issuer Authentication Data
Description
Issuer Authentication Data has two components:
q
Authorization Response Cryptogram (ARPC).
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. Version 1. The VSDC data elements to be transmitted from the terminal are listed in the Visa Integrated Circuit Card Terminal Specification.3 Online Request and Response Data
The online authorization request includes the data required for magnetic stripe transactions as well as additional VSDC data. which is used to validate the Authorization Request Cryptogram (ARQC) generated by the card. Online Processing. The online response may contain the data described in Table 12–4.
Contains a bit that is set when Issuer Authentication is performed. which is the response value to be used in the validation of the ARPC
q
Issuer Script
Contains issuer updates to the card.4. The Visa Integrated Circuit Card Terminal Specification. which is an Issuer-generated cryptogram to be validated by the card Authorization Response Code. contains a detailed description of these data elements and their usage. Card and Issuer Data Elements Table.
12.2 Terminal Data
The terminal data described in Table 12–3 is updated with the Issuer Authentication status.

The response is received by the terminal at the beginning of Online Processing. The GENERATE AC command is sent to the card during Terminal Action Analysis. The response from the card indicates whether Issuer Authentication passed or failed. Version 1. the response is a dynamic signature.4 Commands
The following commands are used during Online Processing: GENERATE APPLICATION CRYPTOGRAM (AC) Command Response The terminal receives the card’s response to the GENERATE APPLICATION CRYPTOGRAM (AC) command. The card returns the GENERATE AC response at the end of Card Action Analysis.Online Processing
Visa Integrated Circuit Card Application Overview. The response includes the first Application Cryptogram and the Cryptogram Type. which contains the Application Cryptogram. The GENERATE AC command may indicate that Combined DDA/AC Generation be performed.
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.4. EXTERNAL AUTHENTICATE Command If Issuer Authentication is to be performed. the terminal issues the EXTERNAL AUTHENTICATE command with the Issuer Authentication Data requesting that the card validate the Authorization Response Cryptogram (ARPC). which is included in the command.0
12. If the response is an ARQC or a TC and Combined DDA/AC Generation is performed.

to be validated using Issuer Authentication to prove that the response came from the valid issuer. and optionally performing Issuer Authentication.1.1 Online Request
Online request processing differs depending on whether Combined DDA/AC Generation has been requested. standard online processing is performed.4. If the hash matches. the terminal proceeds to the Completion function.0
12.Visa Integrated Circuit Card Application Overview. Otherwise.
12. which may include an issuer script containing updates to the card parameters or a cryptogram.2 Standard Online Processing
If the card returns an ARQC to the terminal in the GENERATE AC response and the terminal has the capability to go online.
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.1. processing the online response.
12. processing includes validation of the dynamic signature.
q
q
12. the terminal performs the following processing:
q
The terminal deciphers the dynamic cryptogram using the recovered ICC Public Key to recover the Application Cryptogram.5 Processing
12.5. the terminal transmits an online authorization request message. the terminal performs Issuer Authentication.1 Combined DDA/AC Generation Processing
If Combined DDA/AC Generation indicated in the GENERATE AC command and the cryptogram returned is an ARQC or a TC.
12.5 Processing
Standard Online Processing includes processing the online request.5. If the online response contains the Issuer Authentication Data and the card supports Issuer Authentication. If the hash does not match the terminal indicates in the TVR that Combined DDA/AC Generation failed and proceeds to Completion. Version 1. If the card does not respond with an ARQC or the terminal is unable to send the transaction online.5.2 Online Response
After the online request message is successfully transmitted to the issuer. If Combined DDA/AC Generation is to be performed. or both. the terminal receives the online response message.5. the terminal proceeds to the Completion function.

5.4. Version 1.Online Processing
Visa Integrated Circuit Card Application Overview.
q
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. Both the card and terminal record Issuer Authentication results:
q
The card sets Issuer Authentication results in the Card Verification Results (CVR) and the Issuer Authentication Failure Indicator and returns the results to the terminal in the EXTERNAL AUTHENTICATE response.0
12. The card validates the ARPC using the ARQC generated previously by the card. The terminal sets Issuer Authentication results in the Terminal Verification Results (TVR) and the Transaction Status Information (TSI) before proceeding to the Completion function.3 Issuer Authentication
The terminal transmits an EXTERNAL AUTHENTICATE command to the card instructing the card to perform Issuer Authentication. the Authorization Response Code from the issuer. and the Unique DEA Keys (UDK) stored in a secret location on the card.

If an ARQC was requested by the card and Combined DDA/AC Generation was performed and failed. Version 1.
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.6 Prior Related Processing
Card Action Analysis The card sets the Cryptogram Type to an ARQC if an online authorization is to be done.4. an AAC (decline cryptogram) is requested by the terminal in the final GENERATE AC.0
12.
12. If a TC was requested by the card and Combined DDA/AC Generation was performed and failed the terminal declines the transaction. the card uses Issuer Authentication results and card parameters to help determine the disposition of the transaction and whether to reset certain counters and indicators.Online Processing
Visa Integrated Circuit Card Application Overview. these post-issuance updates are applied. Issuer-to-Card Script Processing If the online response contains an Issuer Script.7 Subsequent Related Processing
Completion During Completion.

such as allowing the cardholder signature to be verified.
q
q
The terminal may perform additional functions subsequent to Completion. The terminal may perform additional Completion functions if they do not interfere with the Completion functions defined in the VIS card and terminal volumes. Completion includes the following actions:
q
If online processing was requested and the terminal did not support online processing or the online authorization was unable to complete. and capturing data for clearing.
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. After an online authorization. the terminal and card perform additional analysis to determine whether the transaction should be approved or declined offline.
q
q
An issuer’s online approval may be changed to a decline based upon Issuer Authentication results and card options. printing a receipt. If a TC was requested by the card and Combined DDA/AC Generation was performed and failed the terminal declines the transaction with a Z1 Response Code. Indicators and counters are set to reflect what has occurred during transaction processing. indicators and counters may be reset based upon Issuer Authentication results and card options.Completion
13
The terminal and the card perform Completion to conclude transaction processing. the terminal requests an AAC (decline cryptogram) in the second GENERATE AC. If Combined DDA/AC Generation was performed and failed the terminal processes as follows: – – If an ARQC was requested by the card.

Appendix A. which the card returns to the terminal.4.0
13. Card and Issuer Data Elements Table. The CVR is included in the clearing transaction as “proof” of card processing.
Card Verification Results (CVR)
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.
Contains indicators for
q
The type of cryptogram: – An Application Authentication Cryptogram (AAC) for a decline – A Transaction Certificate (TC) for an approval – An Authorization Request Cryptogram (ARQC) when online processing is requested (first GENERATE AC only)
q
Other status information including Service Not Allowed
Issuer Application Data
Includes Visa discretionary data and issuer discretionary data for transmission to the Issuer. including the CVR. A Visa proprietary data element containing indicators.Visa Integrated Circuit Card Application Overview. which are set based upon the results of offline processing for current and previous transactions.1 Card Data
The second GENERATE AC command response. includes the card data elements described in Table 13–1. The Visa Integrated Circuit Card Specification.1 Card Data
13. A count of card transactions. Version 1.
Table 13–1: GENERATE AC Response
Data Element
Application Cryptogram (AC) Application Transaction Counter (ATC) Cryptogram Information Data
Description
The cryptogram generated by the card. contains a detailed description of card data elements and their usage.

which was received by the terminal during Read Application Data. Other data elements used are listed in the Visa Integrated Circuit Card Specification.2 Terminal Data
The terminal data elements described in Table 13–3 are used during Completion.4. from a terminal perspective.Completion
Visa Integrated Circuit Card Application Overview. The GENERATE AC command contains the terminal data elements specified by the card in the CDOL2.
Terminal Verification Results (TVR)
13.
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.
13. The Visa Integrated Circuit Card Terminal Specification.0
The card uses the internal card data elements described in Table 13–2 during Completion. Version 1. Card and Issuer Data Elements Table. Completion. It may indicate that Combined DDA/AC Generation is to be performed. contains a detailed description of these data elements and their usage.
Table 13–2: Completion—Card Data (Partial List)
Data Element
Application Default Action (ADA) CDOL2
Description
A Visa proprietary data element indicating the action a card should take when exception conditions occur.
Table 13–3: Completion—Terminal Data
Data Element
Authorization Response Code
Description
Provided to the card to indicate if the transaction is approved or declined and if the authorization was performed offline or online. Contains indicators that are set to record offline processing results. Appendix A.3 GENERATE Application Cryptogram (AC) Command
The GENERATE APPLICATION CRYPTOGRAM (AC) command is used by the terminal to request a final Application Cryptogram from the card. Chapter 12. such as SDA failure or floor limit exceeded. A list of data objects (tags and lengths) for the terminal to pass to the card with the second GENERATE AC command.

4. declined.1 Transaction Authorized Offline
When the card responds to the first GENERATE AC command in Card Action Analysis with a Transaction Certificate (TC) or an Application Authentication Cryptogram (AAC). the terminal indicates in the TVR that Combined DDA/AC Generation has failed. and the CVR indicating processing results. The terminal completes the transaction. the terminal declines the transaction.
q
q
13.4 Processing
The GENERATE AC response includes the card transaction counter. If the terminal requested in the GENERATE AC command that Combined DDA/AC Generation be performed and an AAC is returned by the card.0
13.4 Processing
Completion involves three steps:
q
The terminal determines the transaction disposition and issues a second GENERATE AC command to the card if an online authorization was completed.
13.1.Visa Integrated Circuit Card Application Overview.4.1 Terminal Determines Transaction Disposition
The terminal processing during Completion varies based upon what has occurred during previous processing of the transaction:
q
At the end of Card Action Analysis. the terminal completes the transaction offline. or service not allowed. Issuer discretionary data may also be provided. The terminal displays a message indicating the action taken: approved. the online authorization request may have: – – Completed successfully Not completed because the terminal did not support online processing or because an online response was not received. Version 1. the card may have: – – Requested an offline approval or decline Requested an online authorization
q
During Online Processing. The card determines the final transaction response and resets card indicators based card parameters and Issuer Authentication status. If a TC was requested by the card and Combined DDA/AC Generation was performed and failed. the cryptogram type indicating the card’s authorization decision.4.
13. the application cryptogram.
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.

P.
q
13.0
If Combined DDA/AC Generation was performed and failed. Version 1. Terminal Action Analysis. the terminal requests an AAC.2 Online Authorization Completed Successfully
If the online authorization was successfully completed. refer to the V. the terminal uses the Issuer Action Code (IAC)—Default and the Terminal Action Code (TAC)—Default to determine the transaction disposition.I. and referrals.1. declines.4. If the Authorization Response Code does not indicate approve or refer. If an ARQC is returned.Completion
Visa Integrated Circuit Card Application Overview. The terminal uses the Authorization Response Code received from the issuer in the online authorization response to determine the type of cryptogram to request from the card:
q
If the issuer has approved the transaction. the terminal issues a final GENERATE AC command to the card to request additional card analysis and a final Application Cryptogram.1. the terminal requests an approval (TC). the terminal requests a decline.
13. the terminal requests an AAC in the second GENERATE AC command. This IAC and TAC processing is similar to the processing in Terminal Action Analysis described in Chapter 10.4.3 Online Authorization Unable to Complete
If the card requested online processing and the terminal does not support online processing or the online authorization did not complete. System Technical Reference Volume 2. the terminal declines with a Z1 response code. If the issuer has requested a referral.
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. the terminal processes as follows:
q
If a TC was returned. the terminal may request an approval (TC) if the issuer has requested a referral. However. If any TVR bits and the corresponding bit in the IAC or TAC are both “1”. it is recommended that the terminal request a decline (AAC). Field and Code Descriptions.4.
q
q
For valid Authorization Response Codes (field 39) for approvals.

0
13. the card uses the final GENERATE AC Cryptogram Type and results from Issuer Authentication to determine the final transaction disposition:
q
AAC (Decline) Requested If the terminal requests a decline (AAC) in the final GENERATE AC command.1 Online Authorization Completed
When the online authorization completed. Completion.4.4. which indicates that an online authorization was not completed. shown in Table 13–4.Visa Integrated Circuit Card Application Overview.
Table 13–4: Authorization Response Code for Offline Action Taken
Terminal Requests
TC AAC
Authorization Response Code
Y3 Z3
Transaction Disposition
Unable to go online (offline approved) Unable to go online (offline declined)
13.2.4. the card always returns an AAC in the response. Version 1.4 Processing
Based on the results of this processing.
q
If the Authorization Response Code is one of the offline codes listed in Table 13–4. the online authorization was completed.2 Card Responds to Final GENERATE AC Command
The card uses the Authorization Response Code received from the terminal in the final GENERATE AC command to determine whether an online authorization was completed. the online authorization was unable to complete or the terminal did not support online processing. The Cryptogram Type requested in the final GENERATE AC command indicates whether the transaction is to be declined (AAC) or approved (TC).
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. the terminal issues the final GENERATE AC command to the terminal. Chapter 13. This command also includes an Authorization Response Code. the card updates indicators and counters as indicated in the Visa Integrated Circuit Card Specification.
q
13. If the Authorization Response Code is not one of the offline codes. Prior to responding to the terminal with an AAC.

Version 1. the card responds with a decline (AAC). Chapter 13. was not performed. – PIN Try Limit Exceeded on Previous Transaction If the PIN Try Counter is zero and the card’s ADA indicates that a transaction should be declined if the PIN Try Limit was exceeded on a previous transaction.
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. and the ADA indicates that the transaction should be declined if Issuer Authentication is mandatory and not performed
q
If neither of the above conditions is true. These steps are performed whether the terminal has requested an approval or decline. Completion. – New Card If the card is a new card and the card’s Application Default Action (ADA) indicates that a new card transaction should be declined if it cannot be online authorized. Refer to the Visa Integrated Circuit Card Specification.4. the card responds with either an approval or a decline response based on the status of Issuer Authentication processing and card’s Issuer Authentication options.2.0
q
TC (Approval) Requested If the terminal requests an approval (TC) in the final GENERATE AC command.4.
The card converts the approval to a decline if either of the following conditions is true:
q
Issuer Authentication failed and the ADA indicates that the transaction should be declined if Issuer Authentication fails Issuer Authentication is mandatory. the card responds with an approval. the card performs additional card risk management steps prior to responding to the terminal.2 Online Authorization Unable to Complete
When the Authorization Response Code in the final GENERATE AC indicates that online processing was requested but not completed. the card responds with a decline (AAC).
13. for details on how indicators and counters are set and reset for these conditions.Completion
Visa Integrated Circuit Card Application Overview.
q
Card Risk Management The card performs the following optional card risk management checks if they are supported and the required data elements are present in the card: – Velocity Checking for Total Consecutive Transactions (Upper Limit) This optional check causes the card to respond with a decline (AAC) if the upper limit for consecutive offline transactions has been exceeded.

At a POS device. the ATM shall transmit a reversal. the terminal processes the Issuer Script. Completion.4 Processing
q
Card Response to Terminal The card responds to the final GENERATE AC command issued by the terminal as follows: – Card Declined Transaction If the terminal requested an AAC or the card risk management steps have determined that the card should decline the transaction.0
13. Chapter 13. – Card Approved Transaction If the terminal requested a TC and the results of card risk management indicate that the transaction should be approved. Chapter 13. if present (see Chapter 14. if an online-approved cash disbursement or account transfer transaction is declined by the card because of an Issuer Authentication failure.Visa Integrated Circuit Card Application Overview.
s
At an ATM. if an online-approved purchase transaction is declined by the card because of an Issuer Authentication failure.4. the terminal completes the transaction and displays a message indicating that the transaction was declined. Completion. and responds with a TC. a reversal is required if the acquirer’s authorization system is single message or host-data-capture. the card updates internal indicators and counters as described in the Visa Integrated Circuit Card Specification.
s
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. the card updates internal counters and indicators according to the Visa Integrated Circuit Card Specification.3 Terminal Completes Transaction
Upon receipt of the card’s response to the GENERATE AC command. Version 1. Issuer-toCard Script Processing).
q
Terminal requested an approval (TC) in the final GENERATE AC – – If the card responds with a TC. the terminal completes the transaction and displays a message indicating that the transaction was approved.4.
13. the ATM shall not display the balance. If the card responds with an AAC. If a balance inquiry transaction is declined for the same reason. and responds with an AAC. Final terminal action is determined by the type of cryptogram the terminal requested and the response from the card in the final GENERATE AC:
q
Terminal requested a decline (AAC) in the final GENERATE AC The terminal completes the transaction and displays a message indicating that the transaction was declined.

6 Prior Related Processing
Online Processing If the card receives an EXTERNAL AUTHENTICATE command from the terminal.4.0
13.
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. the card performs Issuer Authentication processing and sets indicators for Issuer Authentication performed and successful or failed. Version 1.6 Prior Related Processing
13.Visa Integrated Circuit Card Application Overview. These indicators are used during Completion by the card in the response decision and in determining which card counters and indicators should be reset.

This encipherment process uses three keys:
q
Master Data Encipherment DEA Key (ENC MDK) is an issuer-unique double-length DES key. Unique Message Authentication Code Key (MAC UDK) is a double-length DES key personalized on the card. The MACing process uses three keys:
q
Master Message Authentication Code Key (MAC MDK) is an issuer-unique double-length DES key. It is derived from the issuer’s MAC MDK.0
14.1 Message Authentication Code Keys
The Message Authentication Code (MAC) keys are used in the generation and validation of the script command’s MAC.Visa Integrated Circuit Card Application Overview. Data Encipherment Session Key is a transaction-unique double-length DES key derived from the ENC MDK and used by the issuer host computer to encipher confidential data in the issuer script.4. The ENC MDK is used to generate the card’s Unique Data Encipherment DEA Key (ENC UDK) and the transaction’s Data Encipherment Session Key. The MAC is a cryptogram included in script commands that ensures that the command has not been altered (message integrity) and that the command came from the valid issuer (issuer authentication).2 Data Encipherment Keys
The Data Encipherment Keys are used to encipher confidential issuer script data such as Offline PIN values during the transmission of the script from the issuer host computer to the card. The MAC UDK is used to generate a MAC Session Key during the transaction. Version 1.3 use the following card and issuer-based keys. The MAC MDK is used to generate the card’s Unique Message Authentication Code Key (MAC UDK) and the transaction’s MAC Session Key.1.1.1 Script-Related Keys
The recommended secure messaging methods for Issuer-to-Card Script Processing mentioned in Section 14.
14. The MAC Session Key is a transaction-unique double-length DES key used to generate and validate the script command’s MAC at the time of transaction.
q
q
These MAC keys are required if the Visa recommended method of secure messaging is supported.1 Script-Related Keys
14. The ENC UDK is derived from the ENC MDK. Unique Data Encipherment DEA Key (ENC UDK) is a double-length DES key personalized on the card and used to generate the Data Encipherment Session Key.
q
q
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.6.
14.

contains a detailed description of card data elements and their usage. which are updated with the script results.0
These data encipherment keys are required if the Visa recommended method of secure messaging is supported and the issuer script commands may include confidential data such as Offline PIN values.2 Card Data
The indicators and counters in the card described in Table 14–1 are used in processing script commands. Appendix A. Card and Issuer Data Elements Table. Version 1. The Visa Integrated Circuit Card Specification.4.
14.
Issuer Script Command Counter Issuer Script Failure Indicator
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.Issuer-to-Card Script Processing
Visa Integrated Circuit Card Application Overview. The CVR contains flags related to script processing. The Issuer Script Command Counter is used to count the Script Update commands received during a transaction.
Table 14–1: Issuer-to-Card Script Processing—Card Data
Data Element
Application Transaction Counter (ATC) Card Verification Results (CVR)
Description
The ATC is used in the generation of the Message Authentication Code (MAC) and Data Encipherment session keys. The Issuer Script Failure Indicator is set when Issuer Script processing fails and remains set until it is reset after a subsequent online transaction.

Version 1. Appendix A.0
14.
Terminal Verification Results (TVR) Transaction Status Information (TSI)
The TSI contains an indicator that is set if an issuer script is processed.
14.
Table 14–2: Issuer-to-Card Script Processing—Terminal Data
Data Element
Issuer Script Results
Description
The Issuer Script Results contains the results of Issuer Script processing and is sent to the issuer in a clearing message or other online message.3 Terminal Data
14.Visa Integrated Circuit Card Application Overview. The TVR contains indicators that are set if Issuer Script processing fails.
Table 14–3: Issuer-to-Card Script Processing—Online Response Data
Data Element
Issuer Script Command
Description
The Issuer Script command contains the command transmitted from the issuer.4 Online Response Data
The data elements described in Table 14–3 are included in the issuer script received in the online response from the issuer. Card and Issuer Data Elements Table.
Issuer Script Identifier Issuer Script Template 2
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. The Issuer Script Template 2 contains proprietary issuer data for transmission to the card after the final GENERATE AC command. The Visa Integrated Circuit Card Specification. contains a detailed description of terminal data elements and their usage.4. which is sent to the card.3 Terminal Data
The terminal data elements described in Table 14–2 are used during Issuer Script processing. The Issuer Script Identifier is a number used to uniquely identify an issuer script.

5 Commands
The following script commands for Issuer Script processing are supported: APPLICATION BLOCK This command blocks the use of the selected application. the card does not allow the blocked application to be available for application selection to perform a financial transaction.0
14.4. Unblocking of an application occurs only at a special device designated by the issuer.
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. Version 1. If the application is blocked during the processing of a transaction. The terminal may select an application that was blocked in order to unblock the application. APPLICATION UNBLOCK This command reverses the status of an application that is blocked. During any subsequent application selection. PIN changes using PIN CHANGE/UNBLOCK or other methods should only be performed within a secure environment controlled by the issuer. CARD BLOCK The CARD BLOCK command permanently disables all applications on the card. the card and terminal continue to process the transaction through Completion. if this occurs. PIN CHANGE/UNBLOCK The PIN CHANGE/UNBLOCK command provides the issuer with the capability either to unblock the Reference PIN (reset the PIN Try Counter) or to simultaneously change and unblock the Reference PIN. However. the card is required to return an Application Authentication Cryptogram (AAC) in response to a GENERATE APPLICATION CRYPTOGRAM (AC) command.Issuer-to-Card Script Processing
Visa Integrated Circuit Card Application Overview.

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. only the following data elements should be allowed to be updated using Issuer Script processing:
q
Lower Consecutive Offline Upper Consecutive Offline Limit Consecutive Transaction Limit (International) Consecutive Transaction Limit (International—Country) Cumulative Total Transaction Amount Limit Cumulative Total Transaction Amount Upper Limit Cumulative Total Transaction Amount Limit (Dual Currency) Currency Conversion Factor VLP Single Transaction Limit VLP Funds Limit
q
q
q
q
q
q
q
q
q
If terminal velocity checking is not supported.0
14. In this version of the Visa Integrated Circuit Card Specification.Visa Integrated Circuit Card Application Overview. Version 1. if present. The UPDATE RECORD command is required to update the PIN Verification Value (PVV) in the track data on the chip to support a PIN change. all of these card data elements.4. the Lower Consecutive Offline Limit and the Upper Consecutive Offline Limit are stored in records and accessible to the terminal using the READ RECORD command. Issuer script commands cannot be used to update the data on the physical magnetic stripe. are stored in proprietary internal files. UPDATE RECORD The UPDATE RECORD command is used to update a record in a file with the data provided in the command’s data field. If terminal velocity checking is supported. It is also required for updates to the Upper and Lower Consecutive Offline Limits if Terminal Velocity Checking is supported by the card.5 Commands
PUT DATA The PUT DATA command allows specific primitive data objects in the card to be updated.

Version 1.6.0
14.6. This requirement may be satisfied by successfully performing secure messaging for that command since secure messaging is a form of issuer authentication.
14. multiple Issuer Scripts may be allowed in a response message. and secure messaging.
14. or alter the data contained on the card only if 1) that command supports secure messaging and 2) secure messaging was performed successfully. Visa requires that some form of issuer authentication be successfully performed prior to processing an Issuer Script Command.4. command processing. The issuer uses secure messaging in Issuer Script processing for each command that instructs the card to modify any information contained in the card. In this version of the Visa Integrated Circuit Card Specification. If an entity other than the issuer originates the commands. indicating that Issuer Script processing is to be performed after the final GENERATE AC command. the same requirements apply.
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.6 Processing
Issuer-to-Card Script Processing is comprised of issuer scripts. The card performs the requested command to update. In a subsequent version. at most only one Issuer Script shall be transmitted in the response message.Issuer-to-Card Script Processing
Visa Integrated Circuit Card Application Overview.2 Command Processing
The recommended Issuer Script commands are used to perform the functions described earlier in this chapter. Issuer Scripts transmitted in the response message always have tag “72”.1 Issuer Scripts
The Issuer Script is transmitted to the acquirer by the issuer in the response message. The originator of an Issuer Script Command is assumed to be the card issuer. change. reset.

Validation of the MAC and decryption of enciphered data requires the use of session keys.4. Data confidentiality ensures that secret data remains secret during transmission from the issuer to the card. message integrity.6 Processing
14. Version 1.Visa Integrated Circuit Card Application Overview. These session keys are unique for each transaction and generated as described in Section 14.1 Script-Related Keys. Message integrity and issuer authentication are achieved using a MAC. and issuer authentication.6. Message integrity ensures that commands and command data are not altered during transmission.3 Secure Messaging
The principle objectives of secure messaging are to ensure data confidentiality. Data confidentiality is achieved using encipherment of the plaintext command data (if present).
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.0
14. Issuer authentication ensures that the command came from the valid issuer. of this chapter.

9 Subsequent Related Processing
Card Action Analysis (subsequent transactions) During Card Action Analysis for the card’s next transactions. Version 1. Completion (subsequent transactions) The card resets the Issuer Script Failure Indicator and Issuer Script Command Counter to “0” after online transactions if any of the following conditions exist:
q
Issuer Authentication was successful Issuer Authentication was optional and not performed Issuer Authentication was not supported
q
q
The Issuer Script Failure Indicator and Issuer Script Command Counter are not reset if an online authorization is not completed or if the card’s Issuer Authentication requirements are not satisfied.4. the CVR subfields are set to indicate script results from the previous transaction based upon the Issuer Script Failure Indicator and Issuer Script Command Counter stored in the card.8 Prior Related Processing
14.
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.
14.8 Prior Related Processing
Online Processing The online response received from the acquirer may contain an issuer script to be processed during Issuer-to-Card Script Processing. The issuer receives this Card Verification Results (CVR) data in the next clearing record and next online authorization.Visa Integrated Circuit Card Application Overview.0
14.

Glossary
This is a glossary of terms used in this specification. stored value.
Application Authentication Cryptogram (AAC)
A cryptogram generated by the card for offline and online declined transactions. accepts PINs. standards accreditation organization.
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. and loyalty. it is not intended as a data dictionary. Examples of applications include payment. to shut down the selected application on a card to prevent further use of that application.S. A U.
application
A computer program and associated data that reside on an integrated circuit chip and satisfy a business function. and disburses currency or checks. and directly or indirectly enters the resulting transaction into interchange. refer to Appendix A of the Card and Terminal volumes of this specification. This process does not preclude the use of other applications on the card.
ATM
An unattended terminal that has electronic capability.
acquirer
A Visa member that signs a merchant or disburses currency to a cardholder in a cash disbursement.
ANSI
American National Standards Institute. For descriptions of specific card and issuer data elements.
application block
Instructions sent to the card by the issuer.

Glossary

Visa Integrated Circuit Card Application Overview, Version 1.4.0

ATM cash disbursement

A cash disbursement obtained at an ATM displaying the Visa, PLUS, or Visa Electron acceptance mark, for which the cardholder’s PIN is accepted.
authentication

A cryptographic process that validates the identity and integrity of data.
authorization

A process where an issuer or a representative of the issuer approves a transaction.
authorization controls

Information in the chip application enabling the card to act on the issuer’s behalf at the point of transaction. The controls help issuers manage their below-floor-limit exposure to fraud and credit losses. Also known as offline authorization controls.
authorization request

A merchant’s or acquirer’s request for an authorization.
Authorization Request Cryptogram (ARQC)

The cryptogram generated by the card for transactions requiring online authorization and sent to the issuer in the authorization request. The issuer validates the ARQC during the Online Card Authentication (CAM) process to ensure that the card is authentic and was not created using skimmed data.
authorization response

The issuer’s reply to an authorization request. Types of authorization responses are:
q

approval decline pickup referral

q

q

q

Authorization Response Cryptogram (ARPC)

A cryptogram generated by the issuer and sent to the card in the authorization response. This cryptogram is the result of the Authorization Request Cryptogram (ARQC) and the Issuer’s authorization response encrypted with the Unique Derivation Key (UDK). It is validated by the card during Issuer Authentication to ensure that the response came from a valid issuer.
Bank Identification Number (BIN)

A 6-digit number assigned by Visa and used to identify a member or processor for authorization, clearing, or settlement processing.

The V.I.P. System component that performs message routing, cardholder and card verification, and related functions such as reporting and file maintenance.
BASE II

The VisaNet system that provides deferred clearing and settlement services to members.
byte

8 bits of data.
card acceptance device

A device capable of reading and/or processing a magnetic stripe or chip on a card for the purpose of performing a service such as obtaining an authorization or processing a payment.
card authentication

A means of validating whether a card used in a transaction is the genuine card issued by the issuer.
Card Authentication Method (CAM)

See Online Card Authentication.
card block

Instructions, sent to the card by the Issuer, which shut down all proprietary and non-proprietary applications that reside on a card to prevent further use of the card.
Card Verification Value (CVV)

A unique check value encoded on a card’s magnetic stripe and chip to validate card information during an online authorization.
cardholder

An individual to whom a card is issued or who is authorized to use that card.
cardholder verification

The process of determining that the presenter of the card is the valid cardholder.
Cardholder Verification Method (CVM)

A method used to confirm the identity of a cardholder.
cash disbursement

Currency, including travelers cheques, paid to a cardholder using a card.

A trusted central administration that issues and revokes certificates.
chargeback

A transaction that an issuer returns to an acquirer.
chip

An electronic component designed to perform processing or memory functions.
chip-capable

A card acceptance device that is designed and constructed to facilitate the addition of a chip reader/writer.
chip card

A card embedded with a chip that communicates information to a point-of-transaction terminal.
clearing

The collection and delivery to the issuer of a completed transaction record from an acquirer.
cleartext

See plaintext.
cryptogram

A numeric value that is the result of data elements entered into an algorithm and then encrypted. Commonly used to validate data integrity.
cryptographic key

The numeric value entered into a cryptographic algorithm that allows the algorithm to encrypt or decrypt a message.
cryptography

The art or science of keeping messages secret or secure, or both.

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consisting of 56 bits that must be independent and random.
Data Encryption Algorithm (DEA)
An encipherment operation and an inverse decipherment operation in a cryptographic system.
Easy Entry
A replication of the magnetic stripe information on the chip to facilitate payment as part of multi-application programs. Version 1. Easy Entry is not EMV-compliant and is being phased out.
digital signature
A cryptogram generated by encrypting a message digest (or hash) with a private key that allows the message content and the sender of the message to be verified.0 CVM List
CVM List
An issuer-defined list contained within a chip application establishing the hierarchy of methods for verifying the authenticity of a cardholder. and 8 error-detecting bits set to make the parity of each 8-bit byte of the key odd.
Dynamic Data Authentication (DDA)
A type of Offline Data Authentication where the card generates a cryptographic value using transaction-specific data elements for validation by the terminal to protect against skimming.
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.4.
decryption
The process of transforming ciphertext into cleartext.
DES key
A secret parameter of the Data Encryption Standard algorithm. See also Offline Data Authentication.
double-length DES Key
Two secret 64-bit input parameters each of the Data Encryption Standard algorithm.
data authentication
Validation that data stored in the integrated circuit card has not been altered since card issuance.
Data Encryption Standard (DES)
The public domain symmetric key cryptography algorithm of the National Institute for Standards and Technology.Visa Integrated Circuit Card Application Overview.

International Organisation for Standardisation (ISO)
The specialized international agency that establishes and publishes international technical standards. MasterCard International. which produces a unique value from a data stream.
interoperability
The ability of all card acceptance devices and terminals to accept and read all chip cards that are properly programmed.Glossary
Visa Integrated Circuit Card Application Overview.
floor limit
A currency amount that Visa has established for single transactions at specific types of merchants. or printed expiration date has passed.
host data capture system
An acquirer authorization system that retains authorized transactions for settlement without notification from the terminal that the transaction was completed.
Integrated Circuit Chip
See chip.4.
interchange
The exchange of clearing records between members.
expired card
A card on which the embossed. Version 1.
encryption
The process of transforming cleartext into ciphertext.0
EMV specifications
Technical specifications developed jointly by Europay International. encoded.
Integrated Circuit Card (ICC)
See chip card. and Visa International to create standards and ensure global interoperability for use of chip technology in the payment industry.
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Hardware Security Module (HSM)
A secure module used to store cryptographic keys and perform cryptographic functions. above which online authorization is required.
hash
The result of a non-cryptographic operation.

or declined if online is not available. entry and use. including their generation.
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. and archiving.
Master Derivation Keys (MDK)
Master DES keys stored in the issuer host system.
key generation
The creation of a new key for subsequent use. or line of business in which a merchant is engaged.
Issuer Action Codes (IACs)
Card-based rules which the terminal uses to determine whether a transaction should be declined offline.
message authentication code (MAC)
A digital code generated using a cryptographic algorithm which establishes that the contents of a message have not been changed and that the message was generated by an authorized entity.
Issuer Authentication
Validation of the issuer by the card to ensure the integrity of the authorization response. sent online for an authorization. to validate ARQCs. distribution.0 issuer
issuer
A Visa member that issues Visa or Electron cards. storage.
key management
The handling of cryptographic keys and other related security parameters during the entire life cycle of the keys. deletion or destruction.
Magnetic Stripe Image
The minimum chip payment service data replicating information in the magnetic stripe required to process a transaction that is compliant with EMV. profession. or proprietary cards bearing the PLUS or Visa Electron Symbol. and to generate ARPCs.
merchant category code (MCC)
A code designating the principal trade. Version 1.
magnetic stripe
The stripe on the back of the card that contains the magnetically coded account information necessary to complete a non-chip electronic transaction. These keys are used to generate Unique Derivation Keys (UDKs) for personalization.4.Visa Integrated Circuit Card Application Overview. See Authorization Response Cryptogram (ARPC).

VIS includes two forms: Static Data Authentication (SDA) and Dynamic Data Authentication (DDA).
offline-only terminal
A card acceptance device that is not capable of sending transactions online for issuer authorization. Version 1.
offline decline
A transaction that is negatively completed at the point of transaction between the card and terminal without an authorization request to the issuer.
offline-capable
A card acceptance device that is able to perform offline approvals. loyalty.
offline PIN verification
The process whereby a cardholder-entered PIN is passed to the card for comparison to a PIN value stored secretly on the card.
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online authorization
A method of requesting an authorization through a communications network other than voice to an issuer or issuer representative.
offline authorization
A method of processing a transaction without sending the transaction online to the issuer for authorization. payment.4.
offline approval
A transaction that is positively completed at the point of transaction between the card and terminal without an authorization request to the issuer.
Offline Data Authentication
A process whereby the card is validated at the point of transaction using RSA public key technology to protect against counterfeit or skimming.0
multi-application
The presence of multiple applications on a chip card (for example. and identification).Glossary
Visa Integrated Circuit Card Application Overview.
nibble
The four most significant or least significant bits of a byte of data.
offline PIN
A PIN value stored on the card that is validated at the point of transaction between the card and the terminal.

Online Card Authentication (CAM)
Validation of the card by the issuer to protect against data manipulation and skimming. Version 1.
point-of-transaction terminal
A device used at the point of transaction that has a corresponding point-of-transaction capability.
point of transaction (POT)
The physical location where a merchant or acquirer (in a face-to-face environment) or an unattended terminal (in an unattended environment) completes a transaction. the key known to all parties.
public key
As part of an asymmetric cryptographic system.4. the key that is kept secret and known only to the owner.
plaintext
Data in its original unencrypted form. See Authorization Request Cryptogram (ARQC). but does not require a shared secret key. through the use of two related keys—a public key which may be distributed in the clear and a private key which is kept secret.Visa Integrated Circuit Card Application Overview.
private key
As part of an asymmetric cryptographic system.
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.
online PIN
A method of PIN verification where the PIN entered by the cardholder into the terminal PIN pad is DES-encrypted and included in the online authorization request message sent to the issuer. See also Card Acceptance Device.
public key cryptographic algorithm
A cryptographic algorithm that allows the secure exchange of information.
post-issuance update
A command sent by the issuer through the terminal via an authorization response to update the electronically stored contents of a chip card.
personalization
The process of populating a card with the application data that makes it ready for use.0 online-capable terminal
online-capable terminal
A card acceptance device that is able to send transactions online to the issuer for authorization.

4. and cannot be disclosed publicly without compromising the security of the system. used for data encryption and authentication. and protects against unauthorized modification or viewing.
random selection
An EMV online-capable terminal function that allows for the selection of transactions for online processing. when used with the appropriate public key cryptographic algorithm. that are directly convertible to cash.
purchase transaction
A retail purchase of goods or services. It is used to store chip operating systems and permanent data. Shamir. without the secure exchange of a secret.0
public key pair
The two mathematically related keys. a public key and a private key which. such as gaming chips or money orders.
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. Version 1.
RSA (Rivest. DES). Shamir. This is not the same as the private key in a public/private key pair.
referral response
An authorization response where the merchant or acquirer is instructed to contact the issuer for further instructions before completing the transaction.
receipt
A paper record of a transaction generated for the cardholder at the point of transaction. Adleman)
A public key cryptosystem developed by Rivest.Glossary
Visa Integrated Circuit Card Application Overview. can allow the secure exchange of information.
ROM (Read-Only Memory)
Permanent memory that cannot be changed once it is created.
secure messaging
A process that enables messages to be sent from one entity to another. and Adleman.
quasi-cash transaction
A transaction representing a merchant’s sale of items. a point-of-sale transaction.
reversal
A BASE II or online financial transaction used to negate or cancel a transaction that has been sent through interchange. Part of Terminal Risk Management.
secret key
A key that is used in a symmetric cryptographic algorithm (that is.

transaction
An exchange of information between a cardholder and a merchant or an acquirer that results in the completion of a financial transaction. This validation protects against some types of counterfeit.4. or declined if online is not available.P.
smart card
A commonly used term for a chip card.
Triple DES
The data encryption algorithm used with a double-length DES key. sent online for an authorization. System
VisaNet Integrated Payment System.I.
Single Message System
A component of the V. the online processing component of VisaNet.0 session key
session key
A temporary cryptographic key computed in volatile memory and not valid after a session is ended.
Visa Low-value Payment (VLP)
VLP is a feature of VSDC designed to provide an optional source of pre-authorized spending power that is reserved for rapid processing of offline low-value payments.Visa Integrated Circuit Card Application Overview. Version 1.I.
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.
Visa Certificate Authority (CA)
A Visa-approved organization certified to issue certificates to participants in a Visa payment service. but does not protect against skimming.
Terminal Action Codes (TACs)
Visa-defined rules in the terminal which the terminal uses to determine whether a transaction should be declined offline.
settlement
The reporting of settlement amounts owed by one member to another or to Visa.
V.
Static Data Authentication (SDA)
A type of Offline Data Authentication where the terminal validates a cryptographic value placed on the card during personalization. System that processes Online Financial and Deferred Clearing transactions.P. as a result of clearing.

clearing. based on EMV and VIS specifications. Version 1.0
Visa Smart Debit and Visa Smart Credit (VSDC)
The Visa service offerings for chip-based debit and credit programs. These services. including the V.P. as well as by Visa rules and regulations. authorization. through which Visa delivers online financial processing.4.
VisaNet
The systems and services.I. are supported by VisaNet processing. and BASE II systems. and settlement services to members.
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.Glossary
Visa Integrated Circuit Card Application Overview.